Interesting post over at TechCrunch theorizing that Web 2.0 isn't actually a bubble, but moreso a return to sanity for venture capitalists.
Bubble, Bubble, Bubble
"Remember that VC’s business models are designed to fail most of the time - the majority of their investments are expected to go belly up, and they hope that just one or two out of ten have a big return. VCs place a bet, and if it fails they move their money and attention elsewhere."
"In Web 1.0 companies didn’t fail (until the crash). They just raised more money, at a higher valuation, and gave it another shot. That isn’t happening today. VCs are letting their startups die, as they should. Things aren’t as exciting as they were in 1999, but it’s a whole lot saner."
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