According to the Dow Jones VentureOne research firm, $254.9 million in venture capital were pumped into start-up blog networks and social networking sites in the first six months of this year, prompting some Silicon Valley veterans to wonder if the rush to invest in Internet 2.0 media will result in an eventual shakeout in the marketplace. Others suggest that winners and losers are inevitable in any new investment space, and that a replay of the dot-com bust of 2000 is unlikely in the current climate.

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