What is the .com bubble? And why did it burst?
In: Economics
The Internet rapidly became widely adopted around the world and many people saw endless business opportunities. Setting up a new business was now relatively cheap and easy and you could have a global customer base right from the start.
A lot of money was invested in various new companies. People wanted to put a lot of money in these new markets as early as possible. They saw the success of companies like Apple and Microsoft and wanted to get in from the start with companies that could well be the next big thing.
Some of them were successful and made their investors incredibly rich. Most companies (just like in the real world) failed miserably.
That initial investment boom quickly slowed down when investors realised that many Internet companies are risky bets.
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