Has smart money abandoned U.S. Web 2.0 companies?

(c) by VentureBeat

Venture capitalists invested about 6 percent more into Web 2.0 companies in the first half of 2007, but the increase was attributable to more deals in Europe and Israel.

Notably, early investors in Web 2.0 slowed their pace. For example, in 2006, Silicon Valley’s Benchmark Capital was the sector’s top global investor, with 16 deals. In the first half of this year, it backed just three deals, with only one in the Bay Area. It was a similar story with Omidyar Network, Kleiner Perkins Caufield & Byers and Storm Ventures, the survey found.

Is the smart money leaving Web 2.0?

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