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Froth Central at Web 2.0?

? Get Ready for Flock |


| For Many Retailers, RFID Lacks ROI ?

October 05, 2005

Froth Central at Web 2.0?

Rob Hof

It's so crowded in the introductory workshops at the sold-out Web 2.0 conference today that people are getting turned away from the conference rooms. That's only encouraging the networking and dealmaking in the hallways of the Argent Hotel here in San Francisco. The main word I'm hearing? Froth. Both entrepreneurs and VCs tell me things are getting crazy again, especially in consumer Internet ventures. Things have been heating up for some time, but it appears they're reaching a boiling point. "It's getting too frothy," says Peter Rip of Leapfrog Ventures. "All these Web 2.0 companies are like mushrooms. There's a feeding frenzy when they pop up."

Not a good sign, frankly. People sure have short memories.

That said, it sure is exciting to see all these new ideas popping. Good thing I don't get to put money into them.

03:27 PM

Web 2.0

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? Final Thoughts, Day One from Web 2.0

I'm surprised by the low ratio of laptops to paper and pens (approx 20:80), but then this isn't Etech. Day one was busy - the conference is sold out and workshops were over-subscribed. But the overwhelming mood seems to be [Read More]

Tracked on October 6, 2005 01:34 AM

? The Vicarious Web 2.0 Conference: Day One from

As far as I'm concerned, not being at the Web 2.0 Conference shouldn't stop the rest us from enjoying it! So here's my attempt a being there without being there. Like many others, I have to be hard at work for clients instead of attending the con [Read More]

Tracked on October 6, 2005 10:19 AM

"Not a good sign, frankly. People sure have short memories."

Is it? Because frankly I think that most of the fly-by-nighters were weeded out long ago, and now the established players who aren't going away can choose who to work with and the VC can have a much clearer direction about what those startups look like.

In other words, I'm not seeing this story end nearly as badly (or badly at all) as the chapter that closed several years ago.


Posted by: Justin Gardner at October 5, 2005 04:52 PM

Justin, you're right. It won't end "as badly" but that's mainly because there isn't an IPO market for these companies. The bubble IPO market hid everyone's mistakes, for a while. But the frenzy is definitely there and with the same 2-4 potential acquirers for all these companies, it can't end well.

Posted by: Peter Rip at October 6, 2005 12:45 AM

It's not all vaporware.

Check out for example.


Posted by: Vic at October 6, 2005 08:14 AM

I am not as hopeful about what is happening.

I see few legit business models out there. I see some really cool tech innovations with little practical value. I see crowded spaces (consider social bookmarking), filled with lots of investments and little differentiation. I see the power players (Google, Yahoo!, eBay, and now AOL) trying to out do each other and spending big dollars to do it.

The big guys are now following a "me too" philosophy via their acquisitions. VCs seem to be doing the same via their investments. Everyone feels like they need a piece of the Web 2.0 pie. Are consumers and the market really demanding a $25 million investment in a blog network? Are they demanding a $2.6 billion for an Internet communications provider?

Is it fun and exciting? Sure. Is it worth the money? Not so sure.

Posted by: Ken Yarmosh at October 7, 2005 01:05 AM

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