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Venture capitalists in the US invested more in Q2 2007 than in any period since 2001, with Web 2.0 startups receiving much of the cash.
The FT reports that investment in information services companies, which includes IT-based services as well as Web 2.0 startups, reached $979m (£476m) in the second quarter of the year.
Online ad firm Traffix is being sued by 50 Cent over a promotional game called Shoot the Rapper.
The musician, himself a shooting victim, alleges that the game illegally uses his image and encourages users to target him.
Rumour has it that the next version of the popular screen reader Jaws may be able to handle Ajax interfaces.
Currently in private beta, Spock is a new search engine that aims to become the leading method for finding information about people on the internet.
The latest Click Fraud Index from Click Forensics is out today, and the company says that the problem is getting worse.
The index, which gathers data from 4,000 online advertisers and agencies, reports that the overall industry average click fraud rate rose to 15.8% for the second quarter of the year.
Google's Q2 earnings have disappointed investors, with lower than expected profits leading to a drop in the web giant's share price.
The company's revenue rose by 58% to $3.87bn (£1.88bn), but its profits increased by a more modest 28%, to $925m (£450m).
It has spent heavily on acquisitions so far this year, as well as increasing its headcount as it develops new products and enters new markets.
The European Union (EU) has approved funding worth €120m (£80m) for a German search engine project to be developed by firms including Bertelsmann, Siemens and Deutsche Thomson.
The Theseus project aims to develop the world's most advanced multimedia search engine, creating a set of tools for indexing images, sound and text.
Social networking site Facebook has made the first acquisition in its three year history – a small start-up called Parakey whose software is still in development.
The purchase looks set to boost its recently launched open source strategy – Parakey is run by Blake Ross and Joe Hewitt, two techies best known for helping to create the Firefox web browser.
Mobile customers are "profoundly dissatisfied" by m-commerce sites that don't allow them to make purchases, according to a new survey.
The report, by Strategy Analytics, found mobile users didn't like being limited to research and pre-purchase evaluation and considered m-commerce sites to be vastly inferior to their fixed internet counterparts.
European photo sharing and printing website Photobox has raised €10m (£6.7m) in financing led by HarbourVest Partners.
Index Ventures and Highland Capital Partners also participated in the funding round, which the company will use to launch new sites and products, as well as expanding its current capacity.
Online payment processor Neteller has struck a deal with US authorities that will see the firm forfeit $136m (£66m) to avoid a prosecution related to its handling of online gambling proceeds.
The two founders of Neteller, Stephen Lawrence and John Lefebvre, were charged with conspiracy back in January as it was being used by US citizens to place bets through foreign-based internet gambling sites.
Internet news blog TechCrunch has announced it has bought InviteShare; an app that makes it possible for users to share invitations to private betas.
The idea behind the service, which only launched last month, is very simple - users register for the beta invites they want and share spare ones with others.