Dow Jones just released a report on investments in what we can summarise as the Internet World. After a continuous drop in investments in the Web industry in 2009, 2010 has been a time of recovery. The bottom was reached in Q1 2009 with only about 50 deals concluded. In fact, Q1 2010 was even worse if we take in consideration the value of the money invested with just over $200M. Fortunately enough, Q2 2010 shows an increase in both volume and value. If the number of deal is more important to online communities, the money spent on entertainment is roughly equivalentto the first one. For the last 2 years, online communities have continuously trusted the first place in investments. Everyone is searching for the next Facebook or Twitter. Companies as Foursquare or Gowalla are clearly seen as potential future with an interesting mix between social and mobile capabilities. Do these startups will bring the ROI expected, it's always hard to say the potential, and we have seen in the past hundreds of promising concepts going nowhere. Today investors are looking very cautiously where they put their money, but we will always see beautiful pitches and plans not giving the expected results. The investors are more than never before asking to theentrepreneurs to have a business model where advertising isn't anymore the only way to create revenue, as they saw too many times the difficulty to attract advertising money in a so crowdy internet world.
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