This article shows my 2012 prediction for Internet media and advertising.
The web startup bubble will start to deflate: there are too many web startups (as I wrote in the last post), but none of them is really needed. Is it worth it for Venture Capitalists to invest in those startups?
Between app overload, a lot of features masquerading as products, a lot more features nobody really wants, and VCs and angels and superangels who no longer can keep track of all their little investments, many Web startups will start to find the going tougher this year.
Many will be acquired, or at least acqhired, so this won’t be a total loss. Nor will regular investors notice much because the companies never went public. So 2012 won’t see carnage of the sort we saw in the dot-com crash a decade or so ago.
But if only because talent, funding and advertising dollars aren’t unlimited, this could be the year when starting a Web company or launching an app no longer is a relatively sure route to success.