Here's a story that talks about, and totals up, all the recent money being invested by venture capitalists in new companies all over the world building solutions around Web 2.0 and social media technologies. By Bill Hartzer, who manages the Search Engine Marketing division of MarketNet, Inc., a leading full-service interactive design and development firm in Dallas, Texas, the bottom line is: venture investments in Web 2.0 and social media are on the increase and a snapshot of investments in the first half of 2007 shows New England taking in the biggest haul.

That whole California vs. New England or Massachusetts technology and investment thing has been going on for years. I think it is a sport: fun to watch, but rather meaningless. It's like the Boston Red Sox, the home team, which is comprised of very few people who are actually from Boston or New England. Still, it's possible that New England's edge, if it has one, is due in part to the tons of great and varied universities here filled up with born and bred Web 2.0 and social media types. Just a theory. California has lots of great schools, too. I've lived and worked in both places.

My biggest takeaway from this news is a question or two: Do these venture capitalists know something about the future of social media others don't? Are they writing checks this size in pursuit of a mere fad? My own experience with VCs over the years tells me they often pick a fair number of start-up losers, but in the end they almost always pick the right categories. They may not be clairvoyant all the time about which company will be huge, but they know a lucrative new trend and new set of technologies when they see one. What do you think?

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