An interesting data from Business Week: half the startups funded during the 1999-2000 period are still alive! Half of them! So contrary to what many believe, this period wasn’t all wasted time and money, but allowed for the launch of real businesses. Now that the burst of the bubble is behind them, it’s take-off time. Of course, everybody talk about Google, the poster child of this period, but behind Google are a host of smaller players that are lining up for the IPOs in 2005 and 2006. Future stars are called TellMe
Networks (voice application software), Vonage (Voice over IP), as well as Force10
Networks, Peribit Networks, and Calix in network equipment; of course the security business is hot and startups such as Fortinet, CipherTrust, and ArcSight are thriving. This "surviving" rate illustrates the old VC saying that the best startups are built during the bear market.
Read the BW article: http://www.businessweek.com/magazine/content/05_10/b3923117_mz020.htm
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