Venture investors still have a healthy appetite for early-stage consumer Internet companies, but those startups are having a harder time raising follow-on financing.
Overall the amount invested in consumer information services was off 42% in the first nine months as the difficulties of newly public Internet companies such as Facebook and Zynga cast doubt on the business models and valuations of social media companies.
Mark Wilson/Getty Images New data from Dow Jones VentureSource provides a more nuanced picture of a venture industry that’s still very interested in consumer Internet startups but more cautious with its checkbook. The data looks at companies financed since 2007 and includes such luminaries as Twitter, LivingSocial, Tumblr and Foursquare. Most, however, are lesser-known companies that have raised far less money.
To read the full, original article click on this link: VCs Still Chasing Web Companies, But With Less Cash - Venture Capital Dispatch - WSJ
