You can bet the financial crisis will prune the Web 2.0 space.
Posted on October 9th, 2008 by Mike Carter
Working at a Web 2.0 start-up, you sometimes get caught up in the whole internet juggernaut media spin. This includes grand statements like -
- Internet advertising is the cheapest most cost efficient medium around. If belts tighten, the money will come to us.
- The sector will continue to expand even in a down turn. We’ve got 10 quarters of growth to build on.
- The Web 2.0 sector is different from the first bubble burst. Proper business models exist and are more robust today.
I tend to agree with some of these statements, but the harsh reality of the economic climate is about to bite, if not already. Sequoia Capital, one of the leading VCs in the Valley, has started to make sure it’s portfolio understands that it’s time to tighten those belts and prepare for cuts. I wonder how many of the Web 2.0 companies listed on 1000 Watt Consulting will survive until next summer?
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