Is 'Web 2.0' Another Bubble?

Carl Bialik from WSJ writes "Two tech VCs, Todd Dagres and David Hornik, debate whether there is a bubble in so-called Web 2.0 companies looking to cash in on a resurgent online ad market. In the WSJ.com debate, Hornik writes: 'Venture capitalists will rationally stop investing in ideas that don't bear fruit. Those that do bear fruit will gain traction and either be acquired or go public. Those are the traits of a rational market in my mind.' Dagres responds: 'I think the Web 2.0 space will have a higher mortality rate than other segments of the overall media and technology industries. There are far too many MySpace and YouTube genetically challenged clones. All but a few will fail. The winners are generally the ones that get in early and out before the bubble bursts. There are rare examples of bubble companies making it through the bust and going on to become successful and valuable companies. By the way, the combined cash flow of Spot Runner, LinkedIn and Facebook is less than that of one Costco store.'"

Comments

Re:Is that a lot or a little?

[silentounce]

We don't, we have immigrant culture. We take from the cultures of the people that make up our nation. I haven't seen the facts recently, but I'm fairly sure that we still have the highest immigration rate in the world. If our country was really that bad, that unfree, that terrible, would thousands of people arrive here every day looking for a better life? My ancestors came here nearly 300 years ago, and I know that means that they probably did some horrible things to the natives, but they came here looking for a better life escaping oppression and persecution in Europe. And they found it. Dissent is a form of patriotism, and that is very prevalent here. But why can't someone say something good about the States here every once in a while. We have our faults, but who doesn't? I know the above post was a joke, but, well, I just had to put in my .002 cents. Go ahead and mod this down and confirm my feelings about this forum.