2000: Dotcom Bubble Burst

The Internet bubble, also known as “Dotcom” like the ending of a website URL, was the rapid growth and funding for internet-based companies 🚀

Bubbles are very hard to recognize when you’re inside it 🛁 but once it pops, the bubble often seems obvious

So, here were some of the warning signs 👉

Since products were very similar, some startups spent up to 90% of their budget on marketing and advertising 📣 Always look out for when bad companies get funding!

Investors overlooked the fundamentals and failed to diversify! Soon almost 40% of all VC investments were going towards internet companies

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The bubble began to pop once investors noticed the failure to profit ❌💸 and soon the rocket-high valuations with nothing to back it crumbled

Famous companies that managed to survive include Amazon and eBay

Many young Dotcom startups crumbled while public ones fell off the markets

Major stocks like Oracle, Cisco, and Intel lost more than 80% of the market cap! The Nasdaq took 15 years to regain its peak before the crash