Michael Arrington of Techcrunch waxes lyrical on new internet ventures going bust and whether this signifies the start if a bubble or just the industry letting off steam, being realistic and a general cooling-off of investment, which is no bad thing as it enables market equilibrium to return.
According to Arrington, "Web 1.0 effectively ended on Friday, April 14, 2000, when the Nasdaq lost about 10% of its total value. Between March 10 and April 17, 2000, the Nasdaq lost over 37% of its all time high of 5,133 (and it fell far further later on). The Nasdaq was practically an index of Web 1.0 companies v. the 'old economy' NYSE, and it got hammered."
Web 2.0 was coined by O'Reilly Media in 2004 and relates to the second generation of internet businesses - many use it to describe better business models, user generated content, a style of design and some just think it is a buzz-word. The problem now becomes trying to identify where web 3.0 will start (hopefully not with the remains of a web 2.0 bubble burst!).
Techrunch have created an area called the Deadpool to mark the demise of failed start-ups with some surprising entries (including Google Answers) and some that are not so suprising!
The fact that non-performing internet companies are being pulled is a sign of a healthy market apparently.
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