Launching a new venture – how things have changed

Launching a new venture today is easier than it was in the dotcom era. According to Business 2.0, in Everything Old is New Again, a number of things have changed:

– Seven years ago a third of U.S. households were on the Internet. Today almost four out of five are online, more than half with broadband connections. The bigger market makes it easier for new businesses to gain traction, while services such as music and video downloads are more appealing to broadband users.

– It’s also cheaper now to set up an online business. Web server hardware that cost $25,000 in 1995 goes for $1,000 today. The price of a terabyte of storage has fallen from $1 million to about $30,000. Back then it could easily take $20 million to see if a wacky idea would work. Now the same business can get off the ground for $20,000.

– Startups also have a better idea of how to succeed…. “The big difference between the late 1990s and today is we didn’t have proven business models,”