Fergie's Tech Blog

Bubble 2.0: Video Sites Spark Fears of Bubble

Richard Waters and Kevin Allison write on FT.com:

An investment boom is underway in consumer video websites, drawing warnings of a new bubble in the venture capital business.

The $1.65bn sale of YouTube to Google last year, along with an expected wave of advertising tied to online video, have prompted a stampede that some Silicon Valley financiers are already comparing to the dotcom bubble, though at this stage at least it remains on a far smaller scale.

Video has become the hottest corner of a broader financing boom tied to so-called “Web 2.0” internet companies. The amount of US venture capital flowing into video-related start-ups of all types jumped by 95 per cent last year to $682m, according to figures compiled by Dow Jones/Venture One.

posted by Fergie @ 4/30/2007 03:41:00 PM