Deloitte received 403 responses from general partners at VC firms in a survey conducted in May and June 2013. 35% were US firms.
One key result was a significant drop in confidence in the New Media/Social Networking sector:
This dropped 8% in the US and 8% worldwide.
My bet is that this is an aftershock of the Facebook IPO, and the growing belief that the web ecology for social networks is overfull. Facebook only recently showed that it could make money on mobile, a question that wasn’t a given even a few months ago. Products like Dodgeball are simply not getting big traction, and aside from a few big wins like Tumblr and Instagram there is a lot of road kill. (Like the email I got today about Skim.me closing down.)
As I have said a lot recently, now that social technologies are becoming mainstream, the work social is losing its emotive power, and the feeling of being at the start of something. Perhaps it will take some new breakthroughs — like the cooperative tools I have been writing about — to rekindle interest in the space. More to follow on this.