Summary:

Venture Capital in Digital Entertainment: Venture Capital in media and digital entertainment seems to be better than the overall investing e…

Venture Capital in Digital Entertainment: Venture Capital in media and digital entertainment seems to be better than the overall investing environment, according to the story. VCs invested over $2.1 billion in the sector, about 485 percent more than 1995. The story makes too much of an extrapolation, because the fact remains that the multiples of returns on any media-related investment are not as high as technology. The market has a longer adoption curve than technology. The kind of digital media firms getting investments are only media-centric, that is, companies that are helping other media firms be more efficient. For instance, in the first four months of this year, six content delivery technology firms got funding, as opposed to zero (yes, zero) in pure content. And most of the investments in any case are later-stage.

However, as VCs and these digital entertainment startups become comfortable with valuations, things will stabilize.

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