Is Web 2.0/3.0 over?

The withdrawal of an IPO filing by Classmates Media, which runs a social-networking site, at the end of 2007 threw into doubt the valuations of all such enterprises, including market leader Facebook. Indeed, that company’s $15 billion valuation, derived from the price paid for a sliver of the company by Microsoft, could begin to look substantially overblown. Will the headwinds challenging these firms have any effect on my venture capital investments?