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The Web 2.0 funding frenzy is in full effect. YouTube, a self described “Flickr of Video” was one day being told to go raise less than a million dollars and grow the business. A few weeks later the word is that they have raised $5 million […]

The Web 2.0 funding frenzy is in full effect. YouTube, a self described “Flickr of Video” was one day being told to go raise less than a million dollars and grow the business. A few weeks later the word is that they have raised $5 million from Sequoia Capital at pre-money valuation of $15 million. Well that’s the story these days with Web 2.0 companies. The money gravy train can have its side effects, Mike Rundle argues.

Dozens of “Web 2.0″ companies launched this past week, while many other companies (Upcoming, Weblogs, Inc., Weblogs.com) were bought. It seems like the web industry economy has suddenly gained 50lbs of muscle weight overnight, and sudden upturns are always scary

But does the world need another RSS company? Not after Google Reader, or when Yahoo’s version of that comes out next week.

Jonathan Weber, former editor of Industry Standard, now editor of an online site called New West, succinctly puts it: “People on the street in Montana aren’t talking about this… It will be some years out before general people become users.”

Clearly there is a lot of interest in a “user generated” video content. Google, BrightCove and a bunch of others are already doing the infrastructure part. The New York Times had a great summary of the space, and quotes Jeremy Allaire as saying, “We are trying to create a new kind of online media distribution business that has the scale of Google, an Amazon or an eBay,”

  1. You are invited to take a look at QTSaver, Web 2.0 microcontent engine that remixes text.
    QTSaver extracts multiple large chunks of microcontent from a single source from popular search engine sites.
    QTSaver represents search results in a more human way. Instead of the current web searching which can be very tedious – receiving vast number of results, going into websites, checking them out, locating the relevant information, storing it somewhere – QTSaver displays a single Search-Engine-Results-Page with the most relevant information.
    Please go to http://qtsaver.dynalias.com/
    You can also get a lot of background information on my Blog
    http://qtsaver.blogspot.com/

    http://qtsaver.blogspot.com/

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  2. [...] I whole heartedly agree with Dave Winer, the Google Reader is crap. what are they smoking? i applaud their interesting use of ajax but the usability is garbage. why try to reinvent the wheel? oh yeah, it’s because they’re google and they can. i know it’s been said before, but Google really has jumped the shark. It’ll be nice to see Yahoo!’s version when they release it next week. [...]

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  3. [...] Sequoia Capital at pre-money valuation of $15 million. Technorati Tags: video vlog   [link] Trackback URL:http://www.aboutwrite.com/wp-trackback.php?p=142 [...]

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  4. Web 2.0: Land of Opportunity, or Land of Absurdity?

    I’m sensing a backlash about the rising VC interest in Web 2.0. Mike Rundle takes aim at Flock in his post subtitled “The Leaning Tower of Buzz”. He thinks Flock is only useful to the blog crowd and doesn’t have…

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  5. [...] – Om Malik, who should know better, picks one company that he wouldn’t fund and then extrapolates that the entire web 2.0 universe. The amount raised? $5m. [...]

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  6. [...] YouTube (I am a longtime user) just raised $5MM with a post-money valuation of $20MM from Sequoia Capital.  Before the Web 2.0 conference they were told they needed to raise less than $1MM and grow the business; after the conference Sequoia jumped on the deal with $5MM.  What changed? [via] [...]

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  7. [...] Here’s an example – Om Malik’s Broadband Blog. A great blog with lots of interesting content. I’ve just finished reading Om’s post on YouTube getting lots of cash, and the Google Ads displayed in the middle of the page looked like this: [...]

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  8. Funding news: YouTube’s $5 Million; Sphere’s $0.5 Million; Flock’s $2 Million

    : These fundings have not yet been announced, hence lumping them together for now. Also, they’re of the Web 2.0 variety: — Youtube: Youtube is on online video upload and sharing site (“Flickr of video”) and Om reported recently that…

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  9. [...] Backing Vimeo comes courtesy of geek-cools Jakob Lodwick and Zach Klein of 2.0 wave riding Connected Ventures. YouTube is based in Palo Alto and got some funding from veteran Valley VC Sequoia Capital. Backing YouTube [...]

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  10. [...] Okay now that I have your attention, let me tell you about a little drama that played out while we were busy celebrating Christmas. Earlier this week, MySpace decided to cut off YouTube videos from their site. (YouTube folks wrote about it on their blog, but later erased it.) You could not even use the URL of YouTube, a Sequoia funded video sharing company, inside of MySpace webpages. MySpace is a social network owned by Rupert Murdoch’s News Corp. This led led to a whole lot of bitching and moaning from the MySpace community. [...]

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