Are U.S. Start-Ups The Next Dot-com Bubble?
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Many fear U.S. start-ups will go the way of the dot-com boom and burst at the beginning of the 21st century. According to Slate’s Will Oremus, CB Insights will be coming out with a report about the finances for this quarter of venture capital firms in the United States. Unfortunately the finances for the second quarter show similarities to the dot-com boom in 2000. With currently a whopping $8.1 billion spread over only 812 companies, analysts and consumers alike fear that the leading Internet and mobile sectors will be hit the hardest.
The fear of another bubble boom and bust is now highly debated. Some fear the start-up bubble burst while others shrug it off. On one hand, the likes of large companies such as Facebook parallel the dot-coms that failed to meet their outward potential. But many more look at the numbers, such as CB Insight’s CEO, Anand Sanwal stated in the Slate article; it turns out combining the numbers for the first and second quarter show normal levels overall.
Even if that isn’t enough to put analysts at ease, there were a few big deals but very little in the way of smaller deals. And with the economic struggles the United States is already facing, booms and busts for individual companies are the name of the game.
Photo From Business Management
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