Pffft goes the dot-com bubble
4. Pffft goes the dot-com bubble
In March 2000, the tech-led stock bubble peaked. Not long after, all heck broke loose. Within months, tales of Silicon Valley janitors driving Ferraris were replaced by Wall Street Journal ride-a-longs with repo men taking back the Ferraris.
Now it all sounds pretty silly. Did we really expect grocery delivery services and pet food stores to be the next great American enterprises? But the impact of the tech bust wasn't just to start-ups. Several companies, such as Cisco and Oracle, cut fast and are now more powerful than ever. Others, such as Sun Microsystems (currently waiting for regulatory approval to become Oracle's latest acquisition), never really recovered from losing so many customers so quickly.
The end of the bubble also changed the way start-ups were financed in Silicon Valley. Gone were the days of massive--and let's face it, questionable--venture financing for unproven companies and execs. What emerged was a flintier, but perhaps more sustainable financing approach to start-ups.
Caption by Jim Kerstetter
December 22, 2009 4:00 AM PST
Photo by: CNET
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