As 700 or so people sober up from Michael Arrington's TechCrunch7 party, I wonder when the Web 2.0 party is going to wind down or end? Or is it just starting to get going? To be fair, we're not partying like it's 1999 (dot-com boom) yet but the signs are there: lots of enthusiastic VCs, a new wave of launch/networking parties, companies with no profits and uncertain business plans thinking about or doing IPOs, etc. There's a general sense of euphoria within the Web 2.0 community that is encouraging and troubling. It's great to see entrepreneurs develop new ideas by taking advantage of low cost programming, bandwidth, software and hardware BUT disconcerting to see so much hype (and VC) descend on these entrepreneurs. Perhaps the poster child is YouTube, which has a service that is running far ahead of its "business". Who knows what YouTube is worth but it's probably worth a lot so YouTube's founders face an odd but wonderful dilemma: do they stay the course and develop the business and/or prime the M&A/IPO pump to get people (Google, Rupert MurdochN etc.) to show them the money? It's these wild valuations that torque the Web 2.0 landscape because they give everyone (entrepreneurs, VCs, investors) unrealistic expectations of fame and riches. (TechCrunch does a great job of stirring the pot!) Don't get me wrong: Web 2.0 is great because it puts thousands of cool services at your fingertips but as Cindy Lauper once said "money changes everything", and this applies to Web 2.0 as well. Maybe, my gut is wrong and Web 2.0 is alive and well but something doesn't seem right.
Note: Check out Dead 2.0's personal take on TechCrunch7. Meanwhile, VentureBlog contends Web 2.0 "boom" is not like 1999 at all given the talk is about new companies, ideas and products rather than who's the newest millionaire.