A new survey recently carried out in the US highlighted that approximately 130 internet companies were shut down, whilst the rate of closure is accelerating with around 21 businesses closing down their servers already this month. This has resulted in over 8,000 employees being made redundant.
The survey carried out by Webmergers.com said that around 75% of closure were with businesses in the B2C areas, e-commerce organisations accounted for around 60% of all shutdowns and content properties make up another 25%.
They also highlighted that many of the companies that closed ran out of money as they waited for more funding. The research also highlighted that many companies waited too long before they put themselves up for sale and as a result ran out of money.
Webmergers president Tim Miller stated that investors always over-estimated the near-term impact of technology and underestimate the long-term impact, even though e-commerce may not transform lives overnight, it is revolutionary and will change the way things are done in future.
