Technology, Culture, Commentary on the Internet Revolution

The Nontech Crash is Sweet Revenge

by Mike Abundo on March 19th, 2008

In 2000, the tech sector fell while the douchebag sectors laughed. In 2008, the tables have turned.

As the mortgage-backed securities market implodes, taking long-standing banks like Bear Stearns with it, investors are wondering whether we’re in for a repeat of the dot-com implosion of 2000. The answer, say some economists, is no — and while the outlook for the overall economy is grim, the tech sector may not take a direct hit this time.

“The bust in 2000 was isolated in the dot-com and IT sector,” says Brent Goldfarb, an assistant professor of management and entrepreneurship at the University of Maryland Robert H. Smith School of Business.

Myles Weissleder, a longtime net entrepreneur who weathered the last economic storm, says that if anything, the Bay Area feels insulated from a recession.

“I don’t think people here are feeling what the folks are feeling elsewhere in the country,” says Weissleder. “Locally, we have a resilient economy. There are a million and one entrepreneurs, and I haven’t heard from [one] who has had a hard time securing capital. Zivity, a user-generated porn site, just secured $7 million. I would venture to say that a company that’s posting nudies on the internet doesn’t need $7 million to do that. I’m not sure if it’s dumb money, or if it’s a sign that people are still investing, but I’m seeing a lot of young companies get funding.”

Matt Marshall said it best: “Meebo raising round, valued up to $250 million. Bear Stearns sold for $236 million.”

I still remember the taunts I got from tech-haters during the dotcom crash. Today, I’m watching them panic while my traffic numbers go up. Revenge is sweet.

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POSTED IN: Business