OurielOhayon: The Bubble 2.0 Meme is still there.

There is more ink than reality. People are still talking about a web2.0 bubble but are not really trying to specify what they mean. Maybe because they can't

This is what i am perceiving from the article by John Dvorak using of the easy title "Bubble 2.0 Coming Soon"

I don't like those articles aimed at impressing without real analysis. The problem is when people start to use buzz expression without even taking the time to explore beyond the surface.

John can you define what you mean by Bubble? How do you believe this Bubble will burst? What form will it take? What is Soon?

He gives also a vague overview of some verticals that are crowded and explains Bubble come in Cycles.

Really? So what? Most of the companies will die? and then what? Then nothing. The internet economy will pursue its way. In the second semester of 2007 close to a billion dollar were invested in internet startup. This is nothing compared to the massive investment in other high tech verticals (green tech and so on)

Like i said in the past, a high rate of creation/death (and there will be a lot let's be clear) is not a synonym for a Bubble which is about the collapse of an industry. As long as there are users, as long as there is cash generated by web companies, as long as there is creation of value even by a small percentage of this company, the internet economy can sustain itself.

For the record the first Bubble was far from only being related to e-commerce as mentioned in the article. There were at the time too few internet users, no mature advertising market and practices, no internet broadband, no real ecosystem for an industry yet to be built. Expectations were way to high and valuations were way higher (not mentioning unrealistic IPOs). If you compare with what happened during the first boom they were 41 IPOs during the first semester of 2006 et 146 for the whole year. in 2007 we are around 17. What about also non internet startup like mobile operators that paid huge tickets to their government for 3G licences? That also created a distrust in the high tech economy that accelerated the collapse.

How can that be compared to today's situation? i really don't understand. Can you anticipate a Bubble out of it? Maybe but then i expect stronger arguments than that.

A recent study by PWC show that only 20% of fund managers there will be a bubble. So are journalists the only one to believe in that?

The only Bubble i see to date, is the one catered by the numbers of articles talking of internet Bubble.

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