The annual survey by VentureOne, a unit of Dow Jones & Co. and Ernst & Young, of Web 2.0 investment showed a 108 percent increase over the $406.2 million raised in the sector in 2005.
Web 2.0 is a catchphrase for the new generation of Internet services that run on slick, interactive software and typically rely on content generated by users to attract more visitors to sites.
But while such jazzy features have become a necessary part of almost every popular online destination these days, the Web 2.0 phenomenon has drawn criticism from nay-sayers who complain that there are few successful business models for these firms."
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