Web 2.0’s Startup Fever

TechReview does a story on whether all these Web 2.0 startups will ever make money, or do they really need to…JEff puts it best: “There is not a dot-com type bubble, but there is a ‘geek founding’ bubble.”
And then I opine about the likely outcome for these companies: They can attract the interest of larger companies, who buy a technology and bring in its developers rather than developing their own version. Flickr, Delicious, WebJay, Konfabulator, and Upcoming, for instance, have all been acquired by Yahoo. Or else startups must acquire so many users that they gain an insurmountable lead over competitors, as YouTube seems likely to do in the video downloading market. Or they can both, of course, like MySpace, which has more than 50 million users and was purchased in July 2005 by Rupert Murdoch’s News Corp.