Where were you on March 10, 2000? That is that day the Internet tech bubble burst.
According to Wired magazine:
The 2000 Internet boom is “more accurately described as a bubble, since it rested largely on wild stock speculation & freewheeling venture capital investment that resulted in the often ludicrous overvaluation of sketchy Internet companies … On March 10, the Nasdaq Composite index peaked (5,048.62), more than doubling its value of a year before. But then the slide began and it was a precipitous drop, which is why March 10 is generally considered to be the day the bubble burst.”
Roger Ehrenberg recently asked if we are witnessing a 2011 Internet tech bubble.
Let’s be serious – EVERYBODY is wondering if there is another shoe to drop in the Great Internet Gold Rush of 2011. $6 billion for Groupon? Nah, too low. Something between $8-$10 billion for Twitter? Sure, why not? Eight-figure pre-money valuations for numerous West Coast consumer web start-ups? Hey, it’s just supply and demand, and besides which, they DID go through YCombinator. $50 billion+ for Facebook?
Although Ehrenberg believes supply and demand are “out of whack among a segment of the West Coast seed stage universe,” he doesn’t think bubble history is repeating itself, at least not yet.