This article was written on August 28, 2007 by CyberNet.
A recent article posted at News.com talks about the deep interest that scores of investors have in social-networking web sites. There’s no doubt why there is such interest – many of these sites have proven to be extremely successful and experience continuous growth and support from venture firms. Facebook is one such example with a “year-over-year growth of 129 percent.” As they become successful, these social networking sites begin toying with the idea of an IPO as Classmates.com is currently doing, along with LinkedIn. While an IPO for any business signifies a certain level of prestige and provides capital for these companies to continue growing, it should be done when the time is right.
The problem that we saw during the dot-com bubble in the late 90’s was that companies sought after an IPO much too quickly which eventually resulted in the dot-com bubble burst. I’m certainly no expert, in fact, I’m far from it. But, I don’t think it takes an expert to see that at some point, we’ll see the Web 2.0 Bubble Burst. Venture Capitalists are forking out money left and right to companies that have a copy-cat idea. Very few of these companies will be able to stick around for the long-haul.
With all of the duplicate Web 2.0 sites, including all of the social networks who are seeking after an IPO or acquisition to cash-in big, it’ll only be a matter of time before the big burst. Those who take it slowly and wait it out will ultimately be those that land themselves on top as Google did when they held out offering an IPO until after the Dot-Com bust. Their IPO was extremely successful which is attributed to the fact that they waited for the perfect moment.
New Poll: When will the Web 2.0 Bubble Burst?
This leads us to our new poll: When will the Web 2.0 Bubble Burst? Go ahead and vote in the sidebar to the right.
It’ll burst…
- By the end of 2007
- Within a year
- Within 3 years
- In more than 3 years
- A bubble burst is not likely to occur
Source: Thanks for the tip Curtiss!
Copyright © 2011 CyberNetNews.com
Related Posts:
- New Poll: Which Google Service Needs More Updates?TDK Ships 25GB Blu-ray Discs At $19.99 Per DiscBubbl.us: Online Mind-Mapping FunNew Poll: What Do you Think of the New iPhone 3G?New Poll: Have you downloaded the Windows 7 Beta?
Post a Comment