"What the Bubble Got Right"
Excerpts:
"Starting in January 2000, Yahoo's stock price began to crash, ultimately losing 95% of its value. Notice, though, that even with all the fat trimmed off its market cap, Yahoo was still worth a lot. Even at the morning-after valuations of March and April 2001, the people at Yahoo had managed to create a company worth about $8 billion in just six years."
"In many businesses, it just makes more sense for companies to get technology by buying startups rather than developing it in house. You pay more, but there is less risk, and risk is what big companies don't want. It makes the guys developing the technology more accountable, because they only get paid if they build the winner. And you end up with better technology, created faster, because things are made in the innovative atmosphere of startups instead of the bureaucratic atmosphere of big companies."