In this overcrowded and overhyped market, clearly if one is building a product centered on the Web 2.0 community, its likely to be headed nowhere. In a small crowded market, the means to get out of the niche segment looks quite difficult. We can definitely see a petering out of the Web 2.0 momentum as we see it now and several entities would disappear. But one hope is that out of this, something robust and strong might emerge, but we have to cut through the hype. In the enterprise software segment, we are now beginning to see good ideas getting funded and enterprises getting launched. As the notable Ray Lane recently wrote with respect to enterprise software companies, opportunities exist for companies pursuing the innovate/dominate paradigm.
Moving forward, I believe in general that good companies with robust business models will always get funded and would swim through tides to make it – cool websites with presentable fonts are not necessarily the ones with good business models.
Article comments
1 - Pete Cashmore
I tend to agree - the startups that create the most value (and often, the ones with the strongest business models), will *always* do well. It's always a good time to start a sustainable business.