Dotcom Bubble
The dotcom bubble refers to the period in the late 1990s when there was intense speculation in Internet-based companies and the crash that followed this speculative investing.
Venture capitalists put money in new dotcom businesses and took some of them public. However, most of these businesses were development stage businesses with no proven products or any revenues at all. Investors, in turn, poured money into these publicly-listed companies hoping to cash in big profits as the stock prices rose fueled by the growth in popularity of the Internet medium.
Unfortunately, most companies never turned a profit, their stock prices began to fall rapidly, and many investors sold the stocks just as quickly as they had bought them. Thus, the market crashed and billions of dollars were lost very quickly.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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