BBC reports that 2006 feels like 1999 all over, particularly in the UK, where venture capitalists are getting eager to support start-up technology firms again. While there is a general sense of excitement, as millions of pounds (or Euro, or dollars) change hands, there is still the feeling of worry for some, because it is a well known fact that the dot-com era of the late 1990’s ended up like a big bubble bursting, with many investors losing much in the gamble.

Venture capitalists are more cautious today than they were in the decade past. While VCs went on investing sprees in the 90’s on young, seemingly innovative startups, they are now focusing on companies or businesspeople that are more mature, sensible, and have a sustainable business model. However, there is a general feeling that the timing may just be right, as the tech industry is more ready than ever for new investments, with the Internet having grown more mature.

Business solutions and company formation experts agree that business sustainability is key to the success of dot-com type investments. Venture firms are on the right track in choosing companies with a good balance of having a solid business model, a good track record, and an innovative idea.

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4 Responses

  1. UK Company Blog

    12|Feb|2006

    [...] may see a lot of newly-minted millionaires from upcoming investments by Venture Capitalists, as we earlier wrote about. While there are still jitters over the possible instability of tech-related investments,businessmen feel that now could be the right time to invest given a better IT environment. [...]

  2. UK Company Blog » Do we foresee a golden era in tech?

    12|Feb|2006

    [...] 2006 may see a lot of newly-minted millionaires from upcoming investments by Venture Capitalists, as we earlier wrote about. While there are still jitters over the possible instability of tech-related investments, businessmen feel that now could be the right time to invest given a better IT environment. [...]

  3. UK Company Blog » A new dot-com era

    17|Feb|2006

    [...] We recently reported on what business analysts consider the second dot-com era, with venture capitalists again warming up to the idea of signing up technology-oriented businessmen and entrepreneurs with good ideas. While it seems that VCs should have grown more risk-averse after the bursting of the tech bubble in the late 1990’s, they’re gambling once more on tech. [...]

  4. UK Company Blog » The new dot-com era: a new business model?

    26|Feb|2006

    [...] We earlier wrote that the UK (and perhaps the rest of the developed world) is facing a new dot-com era. But it seems the trend nowadays is not only the venture capitalists infusing much-needed capital into startup companies. Now, it’s the tech companies buying the non-tech firms. [...]


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