Silicon Valley startups fueled growth of the technology industry, and it would be unfair to say that day is over. However, a Wall Street Journal report has touched off a debate about the latest spate of startups, many of which are reportedly running out of money.
The Journal reported yesterday that startups are having a hard time securing follow-up funding. Although most of these companies are centered in and around Silicon Valley, it's important to note most of these are specifically Web-based startups. The problem, says one venture investor, is too many startups seeking a limited amount of capital.
Even though this news adds to the general malaise around the economy, it could help avert a disaster like we saw in 2000/2001, when the last over-hyped tech bubble burst and the closure of dotcom companies rebounded on the hardware supply chain.
To read the full, original article click on this link: EBN - Barbara Jorgensen - Avoiding Another Dotcom Disaster
Author:Barbara Jorgensen, EBN Community Editor
