Dotcom

Dotcom ( eng. Dotcom , dot-com , also dot.com ; from eng. .Com ) is a term that applies to companies whose business model is entirely based on work on the Internet . It arose and became widespread in the late 1990s . at the time of the boom in Internet business. The term is derived from English. dot-com ("dot-com") is the .com top-level domain in which the sites of commercial organizations are registered mainly.

After the collapse of the dotcoms, the word dotcom began to be used as a designation for some immature, ill-conceived, or ineffective business concept.

The rapid development of dotcoms was associated with increased public attention to new opportunities provided by a worldwide network. For the heyday of dotcoms, the low cost of borrowing and investment capital for any projects related to the Internet was also very characteristic. Not least of all, this led to the emergence of a huge number of companies that, using the mention of the Internet as a magic spell, easily received significant investments not only from venture funds , but also from more traditional financial institutions.

The dot-com boom ended in March 2000 with the collapse of the NASDAQ and the bankruptcy of hundreds of companies generated by the Silicon Valley's “information economy”. The collapse of the dotcoms caused a massive outflow of funds from the Internet sector of the economy and a loss of confidence in this type of business.