In life after the bubble, tech takes a backseat

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which now offer online shopping, said Hal Varian, a business and economics professor at the University of California at Berkeley.

And that business model has also worked for some Internet pioneers such as Peapod, which received a cash infusion from international food provider Royal Ahold.

Varian pointed to Pets.com as another example of a noted online retailer whose business plan was not all that far-fetched. While that company was possibly more well-known for its sock puppet mascot, today retail chains such as Petco Animal Supplies and Petsmart offer online shopping for pet supplies.

And while tech financing has changed in the past five years, one economist notes that the Internet bubble wasn't the first--and likely won't be the last.

A number of booms have emerged since the Internet bubble burst in 2000. Nanotech, Wi-Fi, voice over Internet Protocol and search engines are some of the bubbles that have formed over the last several years, Haacke said.

Nanotech or Wi-Fi may not affect the global economy to the degree that occurred with the Internet bubble in 2000. But the popularity of building businesses to serve China and investments in the country may have such a worldwide effect, said Haacke, author of "Frenzy: Bubbles, Busts, and How to Come Out Ahead."

"One of my concerns is China," Haacke said. "China knows it has a big bubble in their country and is trying to moderate it to avoid a crash. It could have a dramatic effect because so many companies are doing business there...and a lot of banks are helping U.S. business and other companies there."

Venture Capitalists have learned their lesson?

Your article "Life after the bubble.." states that VC's have learned from their experiences. My own experience suggests that they are more cautious to validate the truth behind any claim, that they require much more to even consider an investment, and do want a plan for profit and liquidity. What they haven't lost is their desire for unrealistic returns, the kind of returns that are very rarely achieved in the timeframes required. Consequently, they force unrealistic forecasts and pie-in-the-sky promises. The result is that few deals are ever done, and many very good ideas and contributions die from a starvation of capital. Part of the burst was due to the same expectations and behavior.

[Prndll]

lol.....

The so-called "bubble burst" was nothing more than idiots leading idiots. The truth is that only an idiot would buy a pair of jeans online.

LOL....
With the security mess that exists today, it would be a very big mistake to wage huge dollars on wether or not large scales of people are going to buy online. I know that more and more are, but each and every time for everyone is not only another oppertunity for ID theft, but theft directly out of people bank accounts.

Until some of the larger security issues are resolved, this kinda thing needs to be just put on hold. There just simply is too much risk on behalf of ordinary people and too many people that know too little or nothing at all about how and why computers do what they do.

I just wonder if any of these investment firms understand any of this???