Editor’s Note: This post was originally published on Seattle 2.0, and imported to GeekWire as part of our acquisition of Seattle 2.0 and its archival content. For more background, see this post.
By Matt Hulett
You might have seen my guest post on TechFlash yesterday. In the blog post, I made the case that Web 2.0 companies are more prepared, stronger, and smarter than their counterparts in the Web 1.0 days. Some interesting data didn’t make the final cut of the blog post, so I thought I’d include them here:
On the point of less capital invested in now in startups, Madrona Ventures’ partner, Matt MacIlwain, pointed out to me that “perhaps the best illustration is that $100 billion was invested in venture-backed companies in 2000 and closer to $30 billion in 2007. That alone suggests that there is $70 billion less of capital invested in companies in the year prior to a big downturn.”
On my point about today’s companies having business models, I asked a local venture capitalist (who wished to remain anonymous) to give me a real-world apples-to-apples example to exemplify this point, see below:
One example isn’t representative of every situation. But, I know that this represents how most early stage companies have grown up over the years. This was such an interesting datapoint that I couldn’t not let it be published. Thank you to the two gentlemen for supplying me such interesting data for this article.
