Dow Jones VentureSource put out some data on Web 2.0 deals in the U.S. earlier this week that I’ve put together into these charts. The first one above shows how much money has been invested in Web 2.0 startups so far this decade. In 2007, venture capital poured into Web 2.0 companies at a record pace—$1.34 billion. That was up 88 percent from the $716 million invested in 2006.

But did Web 2.0 deals peak last year? Take out the $300 million raised by Facebook, and the amount invested was up only 46 percent, a marked slowdown from the 132 percent dollar growth the year before. (The amounts charted above, starting with 2001, are $68 million, $29 million, $79 million, $232 million, $716 million, and $1.343 billion)

The growth in the number of deals is also slowing. Last year, there were 178 Web 2.0 deals in the U.S. That was up only 25 percent, after doubling every year for the previous four years. And in Silicon Valley last year, the number of deals actually dropped from 74 to 69.

In 2007, the median deal size was $5 million, up 22 percent. And the median pre-money valuation was $10 million, up 66 percent (from $6 million in 2006). Both deal size and valuation for Web 2.0 companies remained below the average VC deal across all industries ($7.6 million and $16 million, respectively)

Here is a list of some of the biggest venture financings of 2007, including ones for Facebook, Ning, Zillow, Veoh, MyStrands, and Hi5. Slide’s $50 million isn’t included because that was in 2008. Hey, maybe things haven’t peaked after all.

Genealogy social network Verwandt has raised an undisclosed series B from Hasso Plattner Ventures (HPV), said to be in the “multi-million-dollars” but otherwise undisclosed. They closed their first round in July 2007 from Hamburg-based Neuhaus Partners.

Verwandt was originally a clone of Geni.com (although Geni has evolved significantly since then and now has photos, a family news feed, etc.) and launched six months after. Despite releasing later, Verwandt claims to have grown at a faster rate than Geni, adding one million family trees and 9.5 million profiles in the first five months compared to Geni’s 4.5 million after launch. Verwandt now says they have over 1.4 million families and 16 million profiles. Germany makes up about a third of their traffic.

The tremendous growth can at least in part be attributed to the site’s availability in multiple languages. Verwandt is available to users in German, Polish, Italian, Portuguese, Spanish and English. Verwandt also has Gedcom import/export, which allows family tree data to be moved around to different applications. A lot of Verwandt’s growth has likely come from Gedcom import data. CEO Sven Schmidt says imports make up less than 5% of their profiles. Geni has export capabilities now, import is coming soon.

San Francisco based Founders Fund launched in 2005 with a $50 million venture fund. They’ve had two liquidity events since then, and a handful of other very high profile investments (Facebook, Powerset, Ooma, Quantcast, Slide, Geni, Causes, etc.).

Today they will announce a second fund, Founders Fund II. It’s much larger – $220 million. And unlike the first fund, the money comes mostly from outside investors. The new fund will allow Founders Fund to make 15-20 new investments, including pro-rata investments in follow on rounds.

A couple of investments have been made out of the new fund, they say, but have not yet been disclosed.

Founders Fund partners have deep connections in Silicon Valley, which help with deal flow (Peter Thiel, founder and former CEO of Paypal, Ken Howery, founder and former CFO of PayPal, Luke Nosek, founder and former Vice President of PayPal and Sean Parker, founder and former CEO or President of Napster, Plaxo and Facebook). But they also approach deals differently than most other funds.

Sean Parker said today in a phone interview that a glut in venture capital, combined with reduced capital needs of most startups, has led to a shift in balance of power between entrepreneurs and VCs. Founders Fund recognizes that shift and has evolved does deals a little differently because of it. For example, they invented and promote the issuance of a special class of stock, called Series FF, which allows entrepreneurs to take money off the table much earlier in their company’s lifecycle. They also allow significantly more liberal voting rights to founder board members than many other funds. See this article in the SF Chronicle earlier this year for more on how they do business.

Family genealogy and social newtork Geni got to five million profiles in the first five months after launch. Their early growth propelled them to a $100 million valuation and a lot of positive press.

In August the inevitable German clone launched. The clone, called Verwandt.de is a near carbon copy of Geni.

But unlike most clones, which never do as well as the original application, Verwandt is growing at nearly twice the rate that Geni is. In Verwandt’s first five months, CEO Sven Schmidt says they have spread to six languages (German, Polish, Italian, Portuguese, Spanish and English). One million family trees and 9.5 million profiles have been created (4.5 million more profiles than Geni’s first five months).

They’ve cannibalized a lot of early adopters in the Europe and South America with strong execution in localized markets and languages. Verwandt is even taking on Geni on its home turf. They’ve just launched in the U.S. under the domain ItsOurTree. Same design, different words.

Geni’s simple Flash interface was an innovation among genealogical sites (see our coverage of established competitors like MyHeritage and Ancestry.com). Verwandt is nothing more than a blatant rip of of Geni. But they are executing perfectly, and those 9.5 million user profiles are likely gone for Geni forever. Verwandt’s success means other clones will pop up even quicker than befoe. And that means startups need to think about international strategies right at the start, perhaps even before launch and before the application is proven.

When we covered the slate of companies helping people chronicle family stories and milestones, we left out a quiet but excellent Redmond, Washington startup called Sampa.

They aren’t new, and we’ve covered them before. The reason we left them out is that we’ve had some difficulty in categorizing them.

In many ways Sampa is a blog platform with a focus on privacy features, like Vox. But we’ve also compared them to easy site creation tools like Weebly, Synthasite and Jimdo.

But recently they’ve added new features to focus on family story telling and milestones. There is now a Geni-like family tree feature, and trusted visitors can upload photos directly as well.

And they’ve also added a MyBlogLog-type feature that shows visitors to the site – both their name and an avatar. Sampa sites have areas that are private by default, so only people you invite in see the site (they see it via an invitation URL, and subsequent visits are authorized via a cookie.

The hodge-podge of features results in a really compelling hang-out for families to tell their stories, celebrate weddings and births, and share photos and family tree information. The site is also free, although eventually users will be able to pay to have advertisements removed.

It’s a good site, and one of many startups that are doing a lot on very little capital – the company has raised just $310,000.

Spectrum Equity Investors has led a $300 million investment to acquire a majority interest in Provo Utah-based The Generations Network (the parent company of Ancestry.com, MyFamily.com and other sites) according to a source with knowledge of the deal.

The Generations Network competes with a number of new Internet startups that we’ve recently covered. Its Ancestry.com site competes with Geni and MyHeritage. MyFamily.com competes with Story Of My Life, Our Story and others.

Geni’s last round of financing valued the company at $100 million. But none of those competing sites, or even all of those sites aggregated, have caused any financial pain yet for The Generations Network. The company is pulling in $150 million or so in yearly revenue and is hugely profitable according to our source.

This is a liquidity event for many or most of TGN’s shareholders, although it is apparently not a complete buyout. Employees and possibly some outside shareholders still have equity in the entity, which is almost certainly preparing for an IPO or other larger liquidity event.

The most recent Comscore data says TGN had 8.2 million unique worldwide visitors in August. They’ve raised $95 million to date, although the last round of financing was closed in 2001.

The company is not responding to requests for comment.

Israeli startup MyHeritage was a bit of a sleeping giant. Until newcomer Geni came along and shook up the genealogy world with its slick new viral family tree application. Geni quickly reached 5 million people profiles and a monster $100 million valuation just a few months after launching.

MyHeritage has been around since 2005. They’ve quietly raised $9 million in venture capital (about half from Accel and half from two angel investors, Yuval Rakavy and Aviv Raiz). Until recently MyHeritage required users to upload family genealogy information from desktop based software. The information was viewable online but no changes could be made. An unwieldy system, but they still managed to gather 150,000 family trees with 180 million people profiles from 17.2 million users. 150,000 new profiles are added daily. That dwarfs Geni, although MyHeritage had a long head start.

A couple of weeks ago MyHeritage unveiled a number of fundamental architectural changes to their service. They’ve taken the best features of Geni and married them to the stuff at My Heritage that has worked over the past couple of years.

Users can now upload data (name, email, born/died dates, photos, etc.) directly on the MyHeritage website in addition to the client, choosing from17 different languages. The user interface, which like Geni is in Flash, shows a couple of different views to quickly move around a family tree. Over 100 million photos have been uploaded to the site, and users can tag faces with names an attach them to user profiles.

That isn’t all MyHeritage is up to, though. They acquired Pearl Street Software late last year. That acquisition brought matching technology to the company which allows the service to compare family trees to find overlap – even if names are spelled differently or the basic data is somewhat off (slightly different birth or death dates, for example). They are just beginning to roll out the matching service, but they expect to see a lot of overlap between family trees. If both sides agree, the trees can be merged at appropriate places.

MyHeritage hopes, like Geni, to one day have much of the world’s genealogy mapped online. Given that 1 billion people are online today, MyHeritage’s 180 million people profiles is a good starts towards reaching that goal. They eventually hope to have 3 billion profiles, including people who’ve passed away. And at that point the family relationship between any two people in the world is just a mouse click away.

It’s a grand vision, but one that is likely to be achieved someday by MyHeritage or one of their competitors.

As an aside, MyHeritage also has a robust (and free) genealogy metasearch engine that taps into 1200 genealogy databases around the world.

Genealogy site MyHeritage is merging with Pearl Street Software. Through the team-up MyHeritage will pick up Pearl Street’s VP of Technology and gain control of the #2 family tree software in worldwide sales (Family Tree Legends), the #2 family tree submission site (GenCircles) with more than 160 million ancestors, and more than 400 million public records in the Family Tree Legends Records Collection.

The addition of the team and products put the company in a better position to deal with upstart Geni, which announced over 5 million profiles in 5 months in July. They’ve also been getting a great deal of the press. However, Geni still has a long way to go when taking on the established ancestry industry. MyHeritage has a large lead on the site with over 10 million registered users of their site. Ancestry.com, the leading genealogy site, has added 5.6 million people to their family trees this week.

As a sign of the competition, MyHeritage will now be making all the Pearl Street Software free.

Update: This acquisition actually took place in December 2006 but was not announced until now. Integrtation been ongoing since that time.

Germany is starting to build a name for itself as the startup cloning capital of the world. German clones of popular U.S. services keep popping up. Twitter (Frazr, Dukudu). and Facebook (Studi.vz) are two recent examples. TechCrunch contributor Gregor Hochmuth termed these German clones Copy/Paste innovation.

The latest German clone, Verwandt, means “related” in English. Its design and functionality is very similar to its U.S. counterpart, Geni. In fact it goes well beyond similar – Verwandt is a Geni clone dressed up in some cuddlier graphics. It uses the same layout and quick sign-up flash-based registration form as the U.S. site. They’ve also copied the family tree navigation and profile pages. Take a look below to judge the similarities for yourself.

The motivation and business process is clear: 1) Find a proven concept in the U.S. or elsewhere, 2) Clone the service, 3) Profit. And they have been profiting off these clones quite a bit. The Samwer Brothers have invested in Alando.de (eBay clone sold to eBay) and Studi.vz (Facebook clone sold for $100 million). They’re also investors in Frazr. See Gregor’s post for a longer list of clones. Certainly other countries, including the U.S., engage in their fair share of cloning as well. However, the flood of clones coming from Germany suggests an unwelcome trend.

Verwandt seems to be cloning some of Geni’s success as well. They have over 1.5 million profiles in under 2 months of operation, compared to Geni’s 5 million. They’ve also secured an undisclosed level of financing, most certainly helped by Geni’s $100 million valuation.

There’s a lot of great innovation going on outside the U.S., but this rip and flip mentality may prove short-sighted as the real McCoys continue to innovate and internationalize, and solid German startups like Xing are forgotten in the controversy.

We just got word that genealogy site Geni will be announcing that they’ve hit their 5 millionth profile, just five months after launching the service. This is up from 2 million in March. You can view the press release here.

This is not the number of registered users (Geni had 100,000 when reporting 2 million profiles), but rather the number of people put into Geni family trees. A user, after adding themselves, begins to add other people. If you include an email, that user is notified of the existence of the tree and can choose to sign up or not. Every non-deceased person who’s added, therefore, is a potential Geni user. That single viral component to the service will ensure orders of magnitude greater growth compared to established competitors like ancestry.com.

Geni has raised a total of $11.5 million in capital – the last round was $10 million on a $100 million valuation. They continue to add features that have proven to be successful at creating growth at Facebook and other social networks, suggesting that valuation may not be as crazy as it seems at first blush.

When genealogy site Geni announced that it had raised a venture round from Charles River Ventures valuing the two month old startup at $100 million, more than a few eyebrows were raised. For the last couple of months, people have referred to “Pulling a Geni” when they try to raise money at a super-big valuation immediately after launch.

At launch, Geni appeared to be like many other “family tree” websites, just with a better looking and easier to use (Flash) interface. The site is extremely viral. When I first created my account I added my mother and father, along with their emails. They added more family members, who added yet others. Seven weeks after launch there were 126 people in my Geni family tree. Today, Today, after 15 weeks or so, there are 305 people in my family tree. All but three, myself included, were added by others.

Geni, The (Family) Social Network

Geni won’t be successful if all they can do is get people to add themselves and a couple of relatives and then rarely revisit the site. They want viral growth and the kind of big page view numbers that the large social networks see – up to 20 per day per visitor. To get there they’re adding a few proven features to the site. And by adding these features, they are essentially creating a social network with the family, as well as family friends, as the core. There’s a direct analogy to facebook – instead of colleges and universities, Geni is focusing on family units.

New features include:

• photo uploading and sharing
• map view of people in your tree by birthplace or current location
• calendar of upcoming birthdays, anniversaries and other family events
• Add family friends as “friends of your family tree”
• Gedcom export – export your tree in the standard genealogy file format

All of these features will incentivize users to use the site frequently, even daily. The photo sharing feature is modeled on Facebook – users can upload photos and they are then available to everyone in the family tree. Photos can also be tagged with the names of anyone in the tree or any family friends. Those pictures will then appear in the profile of those users. That means people’s profiles get built out even without their active participation.

Geni also has more features planned in the near future. These include Gedcom imports, family tree mergers, and an internal messaging system.

Geni will never have the sex appeal of MySpace of Facebook, but they may finally crack the older demographic and get them participating actively in social networking. If they can become the (or one of the) de facto ways that people share family experiences like weddings, funerals, anniversaries and birthdays, it could become an important part of people’s online life. If that happens, the $100 million valuation will look like a steal.

Our previous coverage of Geni is here.

Seven week old Geni raised a $10 million second round of financing last week, led by Charles River Ventures (see our coverage of CRV here), with a post-money valuation of $100 million. George Zachary from CRV is joining the Geni board of directors. This was originally passed to us as a rumor, and Geni founder and CEO David Sacks has confirmed the story.

This is a 10x increase in valuation for Geni. The company’s first round of financing, led by Founders Fund, was $1.5 million, at a $10 million post-money valuation.

Sacks describes Geni as a “social network for the family.” It provides an easy to use (and easy on the eyes) Flash based family tree. As you add family members, they are optionally emailed to register as well and help fill out the tree. When I first used the service, I added my mother and father. Seven weeks later I have 126 family members in my tree, all added by relatives.

Despite early hiccups due to above-expectations usage, Geni is killing it. Sacks says they have over 100,000 registered users who’ve added nearly 2 million “nodes” (family members) to their family trees.

Sacks has big plans to build out Geni functionality in the future. Look for localization into other languages (60% of Geni users are outside the U.S., even though the site is only in English), messaging to family members, photo and video storage and sharing, etc. Sacks also says they have plans to integrate the Google Maps API to allow users to see the physical location of other family members.

The company is based in Los Angeles and has eighteen employees.

Rumors of the new startup by former PayPal COO David Sacks to be called Geni started a couple of weeks ago. A few days later, on January 16, Geni launched. It allows people to create quick and beautiful family trees, got a flood of early attention and started to spread virally at a blistering pace. One commenter said “this site could be greater than facebook.” Hyperbole? Yes. But that kind of early enthusiasm is worth, literally, millions.

But all of the early attention has led to some very unhappy customers.

I wrote a post a year ago called Don’t Blow Your Beta where I shared some of the pitfalls that startups often fall into when launching their products. The advice I included was simple: make a great first impression, think about your Firefox and Mac strategies (and have one), don’t ask for too much personal information, etc.

Geni did all of those things right. But it created whole new categories of things to do wrong. They ignored the fact that not everyone is English-speaking, heterosexual and comes from a 1950’s era unbroken American-style family. They won’t let email addresses go once they have them. Other issues. They failed to anticipate early traffic levels and the site went down repeatedly. And, worst of all, a lot of data that people painstakingly entered into Geni just disappeared. Deleted. (Correction: See update below) All those early adopters, pissed off.

Geni has been diligent about fixing bugs over time and communicating with users on its blog, which is the best way of handling this stuff. But the biggest issue, the deleted data, is being ignored completely so far.

I still think this will be a wildly successful product. It’s a strong enough offering to overcome even the deleted data issue. But other new startups should take note, and add this to their list of “don’t do.”

Update & Correction: I spoke to David Sacks, who says that the only some uploaded pictures were deleted, and that no other family tree information was lost. My own data, which appeared to be lost, is still there. The issue I was having was around cookies – the site previously allowed auto login via a browser cookie. That was removed (it was actually a bug David tells me), and so I was being taken back to the sign up page when I went to the site. So apart from people who’ve had photos deleted, the people who are reporting deleted data are, therefore, most likely running into this same issue.

David Sacks’ new startup Geni, which we wrote about last week, has gone live.

The initial product is a very easy to use Flash tool to create a profile and a family tree – including siblings, spouses, cousins, aunts and uncles, and their families. When you add a relative, there is an option to add their email address and have the tree sent to them as well. They can add their own data, extending the tree, and Geni will launch tools to merge overlapping trees.

There is more information on the About page. The company has raised a round of financing from Founders Fund.

I’ve started my family tree and have added a few email addresses. It will be cool to see my relatives further expand the tree. And it will be really interesting to take a look at Geni a few years from now, as more and more trees are merged together.

Update: Geni is viral. In my test tree, I added my dad’s email address but didn’t otherwise mention the site to him. I just went back to Geni and noticed the tree has been extended significantly (see image below). And now some of those people have been emailed as well.

David Sacks apparently has something left to prove. He was an executive at PayPal. After their $1.5 billion acquisition by eBay in 2002, he then went on to create Room 9 Entertainment, a production company that produced and financed the (really excellent) movie Thank You For Smoking. He purchased the Uma Thurman overdose house from the movie Pulp Fiction a while back. And now he has a new startup called Geni, with the audacious goal of “creating a family tree of the whole world.”

From his LinkedIn profile:

David O. Sacks’s Experience
Founder/CEO

Geni, Inc.

(Privately Held; 1-10 employees; Internet industry)

June 2006 – Present (8 months)

This is a new internet company I’ve founded. Our mission is to solve the problem of genealogy (the question of how everyone is related) by creating a family tree of the whole world. My CTO/co-founder is Alan Braverman, an outstanding technologist who most recently co-founded Xoom. We are always looking to hire rockstar programmers. This represents a great opportunity to get a meaningful founding stake in a startup with significant VC backing and a strong founder track record building consumer internet products.

The site itself is just a standard landing page asking for email addresses. We have no other details yet.