Funding the Web 2.0 gravy train

The Dead 2.0 blog has an excellent post on the current state of the venture funding environment for consumer facing web services.

This part sort of sums it up:

So let’s circle the wagon back to
where we started.  There’s a lot of folks out there with nifty ideas.
Most of them will fail (due to viability, leadership, market
positioning, bad weather, etc).  There’s a few folks out there who have
a lot of money that they must invest sooner or later.  There’s a lot of momentum, hype, and energy going into an area that the decision-makers generically as a whole do not seem to fully understand. And how could they?  It’s too much, too fast.

My only beef is he took my line about mashing up RSS feeds which was about the opportunity to create more transparency on Wall Street and applied it to consumer facing web services. Oh well, everyone is entitled to take a quote out of context if it helps make a point.

Anway, it’s a good post with lot’s of references/links in it. Give it a read.