Dot-Com Boom: Between 1997 and 2000, more than 12,000 Internet-related businesses were started with more than $100 billion of investors’ money.
Bust: Investors feared they may miss the money-making opportunity of a lifetime.
As more investors competed for a fixed number of good ideas, price of those ideas increased. A number of bad ideas were proposed and funded.
More than 5,000 of these companies went out of business in the year of 2000. The media coverage of the “dot-com bust” was very extensive.
Rebirth – Between 2000 and 2003, more than $200 billion was invested in purchasing electronic commerce businesses that were in trouble and starting new online ventures, according to industry research firm WebMergers. The Rebirth generation of Dot-Com is fueling growth in online business activity. Figure 1-3 p10 summarizes the growth of actual and estimated online sales for B2C and B2B.