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.