It appears that the social-media startup era is coming to end. Over the past two years, from mid-2010 to mid-2012, at least 6% of overall venture capital went to social-media firms.
A report by CB Insights, a research firm that tracks venture capital, indicates that over the past three quarters social-media companies have accounted for about 2% of the funds. The peak of the demand occurred during the third quarter 2011, when about $3.8 billion went toward Internet-related firms.
Anand Samwal, founder of CB Insights offered his take on venture capital and social media in a recent interview with Bloomberg Businessweek.
“Social was so unique in that it had taken up a lot of mind-share,” Sanwal says. “Folks were singularly focused on social, and that was unlike anything we’ve seen to date. It was probably most analogous to e-commerce in the last dot-com boom.”