California Business Minute™

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Hi, I am Tim Johnson and welcome to the California Business Minute.

Dow Jones VentureSource released a report this week that
the Web 2.0 investment boom may be peaking.  VentureSource
identified that there has been a record $1.34B invested  in 178
Web 2.0 deals in the U.S. in 2007, up 88% from 2006. However,
VentureSource found that the results were significantly bolstered
by the $300M investment  in online social networking site Facebook, (California based)
which represented 22% of all funding into Web 2.0 companies in 2007.

Among other data released was a slowdown in deal growth, with a
25% increase in the number of deals between 2006 and 2007; compared with the growth shown
between 2002 and 2006, when the investments in the sector doubled every year.

Regionally, there were 14 deals and $115M in investments in Southern California. In the north
state, the Web 2.0 deals in the Bay Area totaled $720M in 72 deals, up from $431M in 74 deals
last year. However, removing Facebook-(which represented 22% of all funding in Web 2.0
companies in 2007), this illustrates less investments and similar number of deals.

I am Tim Johnson and this has been the California Business Minute.

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