Is the Venture Capital Love Affair With Social Media Over?

After years of investing in the novelty of social media, VCs have likely grown tired of hoping their investments will pay off

According to Bloomberg Businessweek, the social media bubble is going bust. Two years ago, social media companies were attracting up to 15 percent of VC funding. However, a recent report by CB Insights show social media backing by venture capitalists down to two percent in Q1 of 2013.

So where is all this funding going? The report shows investments in business intelligence on the rise, which makes sense considering that businesses have been trying to measure the ROI of social media for nearly a decade.

After years of investing in the novelty of social media, VCs have likely grown tired of hoping their investments will pay off.

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