Original post by Nick Giles via Business Zone 

Fears of a second internet bubble have gathered momentum in recent weeks.

Fuelled by rumours of Facebook’s impending IPO, Microsoft’s $8bn bet on Skype, the eye-watering spike in the LinkedIn share price and the sense that investors are desperate for a piece of the action, wherever that action may be – many are asking whether we’re hurtling towards another meltdown and blissfully ignoring the lessons of a decade ago.

The main statement in defence of the latest frenzy is that the majority of these businesses have a revenue model unlike many of the dotcom failures of the ‘90s.

While their valuations are sky high, they have developed a means to generate cash. The most notable is Groupon which is on track to become the fastest company ever to get to $1bn in annual sales – others are harnessing huge audiences to scale their businesses.

READ MORE