Oh Brother. Here we go again. The death knell to Web 2.0 has been sounded. Abandon ship!! Everybody to the life rafts. The end is near. Every man for himself.
It amazes me — no actually it doesn’t — that no sooner do some Web 2.0 companies kick the proverbial bucket, then the entire space is decried by VC’s and others as dead.
Credit Fred Wilson for standing up to this.
If the VC model is broken, it’s in this area — mass stampedes in and out of a space. Too many companies that are alike are funded which means of course some, but not all, will fail. What happened to the proverbial odds of 1 in 10 making it. Of course many companies are going to fail. That’s expected and part of the plan. That doesn’t mean the space is over. It means that everyone needs to be a bit smarter about their business plans and investments.
This kind of hysteria is the downside of ubiquitous information — too many people have too much time blogging about the same information.