What factors contributed to the "'New Economy"? In the early 1990's technology was knocking at the doors of every American's home. Affordability and convenience is what lead to the rebirth of the economy. Personal computers or PC's for short were much more obtainable in the early 90's, with more Americans with computers in their homes Americans became one with technology. The growing popularity of PC's led to the biggest benefactor in our economic revolution, the Internet.

Wingfield, Nick; "Dot-Com Liquidator"

In the beginning of the Internet boom, venture capitalist swarmed to invest in the newest and supposed best dot-com business. Hundreds of up start companies looked for financial support for their virtual gold mine, and many of them received support. Literally hundreds of companies were financed since the 1995. According to Nick Wingfield, staff writer of The Wall Street Journal, "Venture capitalists have invested $4.6 billion in Internet retailers since 1997". This massive interest in the Internet has been a huge moneymaker and gamble to investors especially since it wasn't certain how the on-line companies were going to react in the market.

· Content Sites: Hybrid companies using broadcasting and content to sell over the Internet.

On-line competition is a huge cost for dot-coms. The main weapon in the dot-coms arsenals is marketing. Marketing is an essential for any business, purchasing ad space in newspapers, magazines, billboards, also in radio and television commercials in hope of promoting the business. Marketing is a costly factor of a company strategic plan to succeed. It is predicted that on-line companies will go to any extreme for exposure, "advertising sales are expected to reach $2.1 billion online, and package-goods advertising is expected to hit $1.1 billion, up from $300 million and $100 million, respectively"(CNET). One form of advertising and the most popular are the banner ads, advertisement space on other WEB pages. This form of advertisement is probably the most commonly used by the dot-com companies and the most ineffective. Since such ads debuted around 1995, "this so-called click-through rate has plunged from an industry high of 10 percent to about 0.4 percent, according to Nielsen/NetRatings"(Olsen). The decline has caused some of the largest Internet companies to race back to the drawing board for more effective formats.

Venture capital firms made hundreds of new public companies possible over the last three years by providing initial financing. They smelled easy opportunity and leapt. Rather than actually fostering a new company's development, venture capitalists could simply fund almost any online-based company, take it public quickly, and sell into the buying frenzy. This trend left many venture capitalists rich and long-term investors out of luck.

Fisher, Jeff; "Why Peets.com Died" www.fool.com,

Some common words found in the essay are:
Journal Venture, E-tailing Actual, Economy Economy, Street Journal, Caufield Byers, Internet Leaving, Revolution Technology, Oracle Sun, Internet Internet, Organic Northstar, on-line companies, dot-com companies, wall street journal, venture capital, wall street, street journal, dot-com industry, information technology, venture capitalists, capital firms, company public, venture capital firms, dow jones& company, inc york 2000, jones& company inc,
Approximate Word count = 1672
Approximate Pages = 7 (250 words per page double spaced)