Tuesday, November 08, 2005

Web 2.0 or Bubble 2.0 ?

There are already signals to believe that people are overplaying the Web 2.0 hype. Consider the following two posts for example :

Dion's Top 10 issues facing Web 2.0 , top of the list is this :

1. Excessive Hype: Nothing will hurt Web 2.0 more than people loudly proclaiming Web 2.0 is the solution to every problem in software. It's surely not and saying so is a credibility killer. We heard this with object technology, we heard this with components, people said it about dot-com, and too many other silver bullets in the last twenty years. Nobody believes there is a overall panacea to the creation of software. Web 2.0 is merely a powerful way of thinking about the design and construction of effective Web experiences. Bloviating is the term I hear the most from Web 2.0 hype complainers. Let's agree to stop it.


And now consider the following post on Bnoopy's Entrep Blog:

So What?
It’s nice that it’s cheaper, but what does it mean to entrepreneuring?

More people can and will be entrepreneurs than ever before
A lot more people can raise $100,000 than raise $3,000,000.

Funding sources explode which enables more entrepreneurs
The sources of funding capable of writing $100,000 checks are a lot more plentiful than those capable of writing $3,000,000 checks. It’s a great time to be an angel investor because there are real possibilities of substantial company progress on so little money.

More bootstrapping to profitability
With costs so low, I think you’ll see many more companies raise angel money and take it all the way to profitability.

Higher valuations for VCs.
And, for those that do raise venture capital, I think it means better valuations because you can get far more mature on your $100,000 before you go for the bigger round.

Combine the above two posts and you can see clear signals of a bubble in the making !!


P.S.: If you are not sure what Web 2.0 is, read this article. It is leangthy article. If you dont have the time to read it, in short, no one knows how to define it. But this is not considered an issue with Web 2.0, it is apparently a feature which does not confine the boundaries of what Web 2.0 could turn out to be. To get a quick idea, just have a look at the following table :


1 comment:

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