Survey shows fears of new dot-com bubble overblown

Excitement over a new class of programs that help consumers customize how they use the Web has fueled fears in the Internet industry that a second dot-com investment bubble may be taking shape. But new data on U.S. venture capital investments from Thomson Venture Economics suggests that the actual amount of Internet investments is falling, despite the wave of interest in what industry insiders refer to as "Web 2.0." Financing of pure-play Internet companies dropped to $596.3 million during the third quarter from $840.5 million in the second quarter of this year and compared with $641.4 million in the third quarter of 2004, according to Venture Economics. "There has been a consistency and predictability in the numbers that gives you great confidence that these markets are not in turmoil as we saw the last number of years," said Michael Greely, managing general partner of IDG Ventures in Boston.

Source: Reuters News

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