While taking issue with a VentureBeat post on teetering Web 2.0 companies, Crosslink Capital general partner Peter Rip commented there are a handful of consumer-facing Internet startups doing just fine. He wrote:
"Cream is rising and curds are falling. Before Xmas I heard of 4 “web 2.0″ deals that had B rounds of $375M in aggregate pre-money value. They have huge user traction (but little revenue, if any).
Consumer web is a lottery. More losers than winners. Nothing new, really. But there is drama at both ends. For every YouTube there are 1000 PeerFlix and Browsters."
I read Rip's comments to mean that four consumer-facing Internet startups recently completed second rounds valued at an average of $93.75 million each. Interesting point, but Rip, who recently joined Crosslink from Leapfrog Ventures, didn't specify which four companies.
If I had to guess, the fortunate quartet Rip is referring to would be LinkedIn, Digg, Yelp and Podshow. They qualify by having raised second rounds of funding from deep pocketed investors toward the end of last year.
Tags: crosslink, peter+rip, web2, vc, venture+capital
Continue reading below
Actually, I wasn't referring to any of *those* companies. The companies to which I was referring all had term sheets but hadn't closed before Xmas. Even more evidence that the party continues.