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Despite Tracking Concerns, Investments Continue

ONLINE PRIVACY—U.S.

February 28, 2011

The Wall Street Journal reports that in spite of ongoing concerns about tracking and a push for legislation to regulate online advertising, companies that specialize in this kind of tracking continue to secure venture capital investments. "Since 2007, venture firms as a group have invested $4.7 billion in 356 online ad firms," the report states, increasing at a rate of 29 percent last year alone. While a Jafco Ventures partner suggests, "Advertisers want to buy individuals. They don't want to buy (Web) pages," Chris Fralic of First Round Capital says privacy concerns can influence investment decisions. As he puts it, "What I look for are the consumers raising their hands" against having their privacy compromised. (Registration may be required to access this story.)
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