I've posted about this before. There's this web 2.0 hype engine going on, but one thing that seems in common among the "web 2.0" companies is the lack of a business plan that leads to real revenue and a solid business. It's as if the same people who did the first Internet bubble in the late 90's didn't learn their lesson, and they want to ride the same game again.

In A Thousand Startups Crying, Nik Cubrilovic points out that Microsoft has promised an RSS Aggregator in the next version of Outlook. Hence, many of the web2.0 companies are based on RSS Aggregation, and therefore Microsoft plans to do to the web2.0 companies what they did to Netscape. For that matter he claims Google plans to kill off Technorati.

Maybe so. It's clear to me that a business that has its own funding is a lot more stable than a company that relies on investors to continue ponying up more investment dollars. Eventually the investors get tired of having no return to show for their investment, and will bail taking their lumps (at least the IRS will give them a tax writeoff).