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The New Dot Com Bubble Tenants

many new internet and social media companies might be good today but gone tomorrow

By Joel Ross | Updated on August 20, 2012

We may be entering a new dot com era with Groupon watching its stock collapse and many questioning the viability of its business model. Facebook stock is off 50% from the offering and there are questions as to how they grow the company into new areas. Numerous internet, game, app, social media, credit card swiping and other startups are popping up all over, and just as happened last time, many will fail. The same mania as we experienced back in the nineties seem to be sweeping the coasts all over again. There are many very smart young people with cool new ideas which they are trying to turn into companies, and some will surely succeed or get acquired. Many others will fold fairly quickly. It reminds me of the early eighties when over 100 startups were each going to take just 10% of IBM’s business. It seems since the internet and Apple and Microsoft, we have these periodic surges of tech mania and dozens of companies start up, get some venture funding, go public and then blow up. Since I am too old to understand a lot of the underlying technology issues or even some of the concepts, I have no idea which might be good or which will fail. What I do know is many will fail and even companies like Groupon might fail. Just as I have witnessed since the early eighties, many of these smart kids have a great ability to come up with the next new idea, but they have absolutely no concept of a real sustainable business plan. Many are dupiciative and many will be overtaken by the next new idea before the first one really gets established.

Now we have a scientific breakthrough where they can store the Library of Congress in a couple of test tubes on DNA. How this is done is so far beyond my ability to understand that it is hard to grasp, but it is the lesson we need take away that is easy to grasp

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