Investors Cautious Returns to Online Startups
“If you missed the first internet wave, it may not be too late. Working with new business models and boosted by investors’ growing appetites for dotcom startups, a second swell of online enterprises is emerging.
Venture capitalist Sam Jadallah of Mohr Davidow Ventures in Menlo Park, California, says that since media giant News Corp. paid $580 million to buy fast-growing online community-builder MySpace.com in 2005, entrepreneurs have been working feverishly on internet business plans they hope will appeal to consumers, investors and potential buyers.
Another reason for the return of interest in the internet: affordability. “The cost to get into business and experiment is dramatically lower than it was in the first boom,” says Jim Fowler, 41, CEO of Jigsaw Data Corp., a San Mateo, California, company founded in 2003 that helps members buy, sell and trade business contact information. Open-source software, offshore programmers, commodity-priced servers and other elements of internet infrastructure are better developed, better understood and less costly than before, Fowler says.
The companies that are part of the resurgence employ an approach labeled Web 2.0. It calls for websites to actively involve users, who build the business by contributing personal pages a la MySpace or valuable information like the corporate executives’ phone numbers and e-mail addresses bartered on Jigsaw.com. “It’s a lot more participatory now,” says Di-Ann Eisnor, 34, co-founder of Platial.com, where users contribute maps of favorite places. “[Users] don’t just come in and read something; they come in and do something.”
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September 14th, 2006 at 2:06 pm
[…] Investors Cautious Returns to Online Startups […]
September 14th, 2006 at 4:05 pm
[…] Investors Cautious Returns to Online Startups … Investors Cautious Returns to Online Startups Entrepreneur.com If you missed the first internet wave, it may not be too late. Working with new business models and boosted by investors growing appetites for dotcom startups, a second swell of online enterprises is emerging. Venture capitalist Sam Jadallah of Mohr Davidow Ventures in Menlo …Work at Home Blog of Business Opportunities, Ideas, Articles and Information […]