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Saturday, 18th October 2008

Lists & Rankings -- Web 2.0's Biggest $inkholes

Web 2.0's Biggest $inkholes

The market's way up. And waaaaaay down.

Interest rates, credit reserves, bailout details, default percentages, retirements postponed...

Yes, it's a noisy moment to start a conversation about crummy Web 2.0 investments. But even before this latest Dow Jones rollercoaster ride, this sector was already a gaping black hole for investment. While the situation in the tech sector may not be as critical as it was 10 years ago when hundreds of millions of dollars got poured into dotcoms (Cough. WebVan.) – it's moving in that direction quickly enough.

People have been predicting the burst of the Web 2.0 bubble for some time now. And the more investors continue to stuff seemingly worthless companies, or duplicates of companies that have already failed, or inflated ideas with no business models, with millions, the closer we're coming to the whole thing busting at the seams. Again.
...
With dollars being carelessly strewn about the entire Web, we at Internet Evolution see the situation at its most severe in five concentrated areas: targeted advertising, social networking, social publishing, video, and search.

What follows is our report on Web 2.0's Biggest $inkholes, broken down into the five aforementioned categories, and supported by some examples of companies that got funded and are having challenges with their business plans (where there was one), or lost it all quicker than it started.

Source: Internet Evolution


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