We can all hear the buzz of Web 2.0, as it storms upon us. Fortunately, we’ve got the experience of a tech bubble behind us, and this time we promise to be good, right? Well, sort of. The truth is that there is something intoxicating about tech buzz, powerful enough to infect the decision making of the best investor.
That makes it a perfect time to take a look at this pattern, and gather a couple pointers. As near as I can tell, this pattern consists of three cyclical events:
So now, what are the keys to becoming a winner? I think this boils down to two keys. First, you must get in quick. As fever grows and knock-offs spawn the value of the technology plummets. Grab the early and original, you’ll need the user base. Next, something more often overlooked (Skype, I’m looking at you) you need a valid business plan. Specifically you must align your businesses cost drivers with realizable cash-flows.
Now, who’s up for an IPO?
You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
October 3rd, 2005 at 1:07 am
[...] at “Vader” will be bundled with every release as an example of a custom style. Brian quickly analyses the future of Web 2.0. Khaled would like to hear your o [...]
October 11th, 2005 at 10:29 am
hey you know an adrian burnham?
October 12th, 2005 at 10:58 am
Nope, but sounds like a good guy…