Was the Dot-Com Bust Really a Bust?
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The other day I was chatting with Tony Stubblebine of CrowdVine (the social networking company building BioCrowd for us) and I was lamenting the possible burst of the social networking bubble before BioCrowd is launched. Tony reassured me and said that “Everyone thinks that after the dot-com bubble burst that almost all Internet-based businesses failed. However, when you look more closely, you will find that this simply isn’t true—there were many survivors who were able to build robust business as the Internet matured.” While I felt a bit better after hearing that (Tony generally knows what he is talking about) I wasn’t totally convinced that he was right. After all, I am one of his customers who are building a new social network. That said, the very next day after my chat with Tony, I found an unusually. insightful article in the New York Times entitled “Lessons of Survival, From the Dot-Com Attic.”
The authors of the article suggest that based on their analysis of existing data that 48% of dot-com companies founded in 1996 were still in business in 2004 (more than four years after the Nasdaq’s peak in March 2000 and the so called dot-com bubble burst). According to the authors, “most people are stunned by this figure: they tend to guess that about 90% of the companies failed.” Further they suggest that “the dot-com survival rate is as good as or better than that for technologies like automobiles, tires and televisions during their formative years.”
How did the dot-com survivors do it? Instead of trying to a make a big splash in high profile market sectors, they identified niche markets that didn’t offer ROIs of hundreds of millions of dollars returns but represented viable Internet-based, business opportunities that could flourish if nurtured correctly. This largely assuaged most of my concerns about a possible impending social network bubble bust and proved to me that Tony knows his stuff! So, whether or not the social network bubble is going to burst, BioCrowd will be launched and we hope that like any new member of a species that it will be strong and fit enough to survive!
Until next time.
Good Luck and Good Job Hunting!!!!!!!
Great information you have .