» uk-netmarketing: roundup: 26-05-2000

Netimperative down but not out...
UK-Netmarketing Weekly Round-up - May 26, 2000

Everyone, new media or not, knows about Boo.com and the inevitable deluge of ‘bubble-bursting’ stories continued. Unfortunately, YesTV’s IPO postponement and the liquidation of Netimperative at the start of the week added fuel to the fire.

When the story broke, it was greeted with genuine surprise because the people involved were well known and respected individuals. Could it be the result of wild spending, or perhaps flightly investors feeling the force of the recent downturn in net-related stocks.

Joe Coughlin wrote, "This is bizarre. They've only been up and running for 3 months and seemed to have a relatively good product. Methinks eSouk and Durlacher had a post-boo panic attack."

Carol Dukes commented, "I agree. Netimperative was/is a great product. If the story as reported in the Guardian is right, then it indicates appalling short-termism from the investors. If they were going to lose their nerve that quickly perhaps they shouldn't have invested in the first place."

Tamara Gillan shared the general air of surprise, "It is indeed a real shame that Netimperative is in jeopardy. I have been very impressed by their initiatives thus far. Netimperative have a very valuable product positioned to serve the new media industry as a whole, that despite recent hiccups will only continue to grow." Whilst, Ben Hawksworth, gloomily added, "If sites with a good product that deliver when they say they are going to go under go under is there any hope?"

If raising funding was hard before, it just got harder. Geoff Inns emailed, "The investors are going to be able to ask for more equity now for second round funding - may have a demotivating effect on those who run new netco's. I imagine some very high offers are going to be have to be made to attract key staff to start-ups."

As the week wore on, it became clear that there was more to the story than it first appeared. Paul Shalet, speculated, "Absolutely tragic set of circumstances for these guys who were proving a solid service . I suspect that there could be more to their story then we are currently being told and I would not be surprised if they engineer a way back with industry support ." Fox Tucker, perhaps with some foresight, added, "I suspect we can look forward to a .com back"

Fiona Campbell-Howes summarised, "Indeed - I was talking to one of their reporters yesterday and the atmosphere seemed more upbeat than you would expect...he couldn't comment yesterday but reckons they'll be able to give more info next week. I too think Netimperative is great - well designed, well-written, good, timely info - but how do they make any money? Can't see a lot of advertising there and there's no subscription fee - at least with Revolution they have their offline pub for advertising/subscription revenue."

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