While I’m unsure if there is a bubble or not, I certainly believe that hype is driving valuations to unrealistic levels (see LinkedIn). On the other hand, here are a few reasons why we are not in a bubble compared with 2000.
1) The Nerds Are Winning
Back in 2000, any sales and marketing guy with half an idea was able to loosen the purse strings of an overzealous investor, as VCs desperately tried to cash in on the buzzing tech industry. Now the founders and CEOs looking for investment are the coders that are developing the products and apps. For start-ups this means that products have often already been developed to a certain extent before investment is sought. Also, giants like Facebook and Google (founded by programmers) realise that developer talent is very important and are remunerating them as such.
2) Broadband
This is quite simple: broadband speeds are multiple times faster than 10 years ago, which has enabled people to stay online for longer (without being annoyed by DSL speeds). Also, websites are more dynamic and intuitive. Sites that epitomised the crash such as boo.com, which relied heavily on Javascript and flash, would have a greater chance of succeeding now as quicker broadband speeds would enable the site to load quicker and enhance the user experience.
3) Internet In Your Pocket
With the advent of smartphones, tablets, wifi, 3G and even social networking, internet users are online more often now than ever, and in ever stranger locations. This has led to sites that are free to end users, with large corporate sponsors and advertisers footing the bill.



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