Economist lays it out for us, as usual: “Although the money being handed out is nowhere close to that given to dotcoms during the boom, it should worry investors that even the most experienced venture capitalists are showing such herd-like instincts today. Profits from social-networking firms may prove to be elusive as those from most online-retailing ventures. Venture capitalists are hoping, however, that the few winners will win so conclusively that their eventual value will justify several initial investments.”
Of course, if you want all the lowdown on the venture capital and M&A deal economy in the digital media sector, you can check out my latest report, “The Digital Media Deals Report Q1, 2004“
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