I expect it’s probably a little bit of both. As more than one person has noted, Web 2.0 companies (or whatever you want to call them) in many cases require a whole lot less financing than traditional technology companies, and that combined with a conspicuous lack of IPOs has left VCs with truckloads of cash backing up and effectively going to waste. And there’s no question that MobiTV is cool — or rather, still cool, since it’s been around since 1999 — although I question how big the market for watching TV on a cellphone really is.
In any case, $100-million is a gigantic pile of money. I just hope that MobiTV can find something worthwhile to do with it. Greg Sterling wonders if MobiTV is becoming the next Webvan. Let’s put it this way: If they start having rooftop parties with free drinks and performances by hot bands, look out. Rafat Ali at PaidContent is also bearish.