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Web 2.0 no revenue but still interesting?

by Juned on May 29th, 2008

An article in FT.com reports that several Web 2.0 internet companies, despite changing online behavior, have not yet produced the promised revenues. This is according to some entrepreneurs and financiers active in the Web 2.0 industry.

Here is the FT article:

Web 2.0 fails to produce cash
By Richard Waters and Chris Nuttall
FT.com

It is an interesting article. And as to my understanding of the article this, slow or lack of revenue and the US economic downturn seems have disheartened or curbed the enthusiasm within Internet start-up community - if you could call it as such.

But at the same time the lack of revenue has not stopped the round of fund raising and acquisition activity. It seems that businessmen - acquires and investors - are still looking for that company that will beat the others.

At least … that is my understanding of it. Go read the article it is all in there.

Does this mean within a year or so there will be only a few Web 2.0 companies left standing?

Only the strongest Web 2.0 companies will be left standing.

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2 opinions for Web 2.0 no revenue but still interesting?

  • Jesse Middleton
    May 30, 2008 at 10:14 am

    I think that much of the Web 2.0 world is not about making money, it’s about testing the waters. Twitter, RedLasso, Viddler and the rest of the gang are all out there to see what can be done. Sure, many of the companies will fail in the end but it will teach everyone (both those involved and not) what works and what doesn’t.

  • Juned
    May 30, 2008 at 7:41 pm

    Jesse, True. But from a investor point of view its all dollars and cent. Correction it also includes dollars and cents. It is a reality of our time.

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