First Came Web 2.0. Now Come The Web 2.0 Dot Bombs

While social networking in all its forms has bred a lot of new websites, and media hype to go with it, the beginnings of a shakeout seem to be in order.
On Wednesday, Seattle-based Jobster announced it was laying off 60 people — 40% of its staff. Jobster is a job board/career networking site (think Friendster for jobs) that has yet to make a penny in profit despite pulling in $48 million in venture capital money. With LinkedIn fast becoming the career networking site of choice, Jobster, the beneficiary of a lot of fawning press (imagine that in the web world!) seems to be losing steam.
So I think you’ll start seeing more Web 2.0 startups flame out the way so many early web ventures did in 2000 and 2001. It’s what happens to shooting stars, I guess.
Meanwhile, our friends at Talent Zoo are stepping up plans to expand–proving that you can grow a web-based business without $48 million in VC money.

About Dan Goldgeier

Blogging on AdPulp since 2005, Dan Goldgeier is a Seattle-based freelance copywriter with experience at advertising agencies across the U.S. He is a graduate of the Creative Circus ad school, and currently teaches at Seattle's School of Visual Concepts. In addition, he is a regular columnist for Dan published the best of his columns in a book entitled View From The Cheap Seats: A Broader Look at Advertising, Marketing, Branding, Global Politics, Office Politics, Sexual Politics, and Getting Drunk During a Job Interview. Look for it on Amazon in paperback and e-book editions.

  • Brian Fioca

    I’m curious about how you’re concluding that Jobster is a dot bomb. Please explain how a revenue generating company that has made an adjustment to reposition itself for an evolving market is a “bomb.” Large amounts of venture capital investment don’t correlate to immediate profits – quite the contrary.
    A company raises large amounts of capital when it deems it necessary to build out a product that has the potential of large revenue generation that can only be achieved after years of expensive product development, sales, marketing, etc. Jobster has only been around for a relatively short time, and can’t be expected to defeat the big guys immediately. It takes time and sometimes readjustments to do it right.

  • Danny G

    Hi Brian,
    If you read the post carefully, you’ll notice that I did not say that I concluded that Jobster is a dot bomb. You’ve made that inference yourself.