$646.2 million has been invested in 101 Web 2.0 deals world-wide in Q1 2007, according to DowJones VentureOne & Ernst & Young LLP. New England invested the most money with investments of $102 million in 10 deals, edging out the Bay Area, with $90.5 million in 25 rounds. Web 2.0 space was also active overseas. In Europe, investors committed $52 million in 20 deals, and in Israel, $15 million in 5 deals. Worldwide investments rose 6% from 2006 levels, attributed to more investments overseas.
“If you’re a venture guy there are few areas you can look now and find an equally attractive place to put your money,” said Scott Raney, partner at Menlo Park, Calif.-based Redpoint Ventures. “You can’t beat an investment of $5 million in a company that could get acquired for hundreds of millions.”