DotCom Bubble and the Internet Companies What was the “Dot.com bubble?” What lessons can be learned from the collapse of so many dot.com/Internet companies.
The dotcom bubble was a rapid rise in U.S. equity valuations fueled by investments in Internet-based companies during the bull market in the late 1990s. During the dotcom bubble, the value of equity markets grew exponentially, with the technology-dominated NASDAQ index rising from under 1,000 to more than 5,000 between 1995 and 2000. The dotcom bubble grew out of a combination of the presence of speculative or fad-based investing, the abundance of venture capital funding for startups and the failure of dotcoms to turn a profit.
