Great read from Contentsutra: an interview with Masayoshi Son, CEO and President of Softbank who were among the first investors of Yahoo. Mr. Son makes an important analytical point in the difference of the New Economy hype and the current wave of innovation:
“There is a difference between Web 1.0 (the first dotcom rush during 1998-2000) and Web 2.0. The former had reached a peak (in valuations, although the companies were not making money). Then the share prices crashed. But now most of the internet companies are making money.”
Certainly, investors have become wise and just collecting eyeballs is not longer the story. There must definitely be more tangible revenue visibility for a company and the valuations will stay in reasonable ballpark.
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