A total of 130 internet companies have shut down in the US since January, making redundant 8,000 employees, according to a new study released on Thursday.
In addition, the study shows that the rate of closure is accelerating, with 21 businesses turning off their servers already this month, while only 22 powered down in the whole of October.
Webmergers.com, which conducted the study, said around 100 of the closures - around 75 per cent - were in the B2C areas. High profile companies shuttered recently include furniture.com, eve.com and pets.com.
Twenty six B2B companies shut down, and the remaining four were combination operations. Ecommerce companies accounted for about 60 per cent of all the shutdowns, and content properties made up another 25 per cent.
According to the Webmergers report, many of the companies that closed ran out of money as they waited in vain for more funding.
The research concluded that companies waited too long to put themselves up for sale, and as they were running out of money, they lost leverage with buyers.
Webmergers president, Tim Miller, says that investors have overreacted in abandoning the B2C sector. "Investors always overestimate the near-term impact of technology and underestimate the long-term impact. We were overly exuberant to the extreme... We overreacted hugely to the prospect of dotcoms and now we are overreacting to their apparent demise."
He says that while ecommerce may not transform our lives overnight, "It is revolutionary and will change the way we do things in the future."
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