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The dotcom bubble - 10 years on
The dotcom bubble officially burst a decade ago on March 10. That was the day the technology-heavy Nasdaq Composite index peaked in New York at 5,048.62 (today it is 2,238.26). Excellent article in Sunday Times summarising some of the highs and lows...(read on for excerpts)
One boom and bust example (mostly bust, really) was Clickmango, an online retailer of vitamins and health supplements. The company had a business plan but no experience of the vitamins sector. Nor was the website even built. Nevertheless, it took only eight days to raise £3m: within a year, the money was gone. The company immediately spent £1m on the website (beats our average fees of £15k-30k).
Take the man from Boo (the online fashion retailer - a pre-ASOS - which burnt through £89m in 18 months.: "We were very arrogant with the fundraising,” he said. “We could have raised much more but we didn’t want to give away this company that was worth £500m, because we thought that it could have been worth £5 billion.” ASOS - a success - is worth £350m.
Read it all...
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