According to Silicon Beat, VCs have pumped $870-million into Web 2.0 companies during the first-quarter. It's great to see this much enthusiasm but the VC business is full of people who jump on bandwagons, which means there is lots of money going into sectors (e.g. video) with way too much competition. It's not the 31st video-sharing site (aka YouTube wannabe) will make it, right? As much as there is a lot of excitement now, get ready for a river of tears down the road when the revenue fails to materialize and the VC suddently money dries up. It may not be as painful as the bursting of the dot-com bubble because there has thankfully been some sense of pragmatism (and a lack of IPOs to seduce retail investors) but it will not be pretty either.