Dot-com's are not safe from economic downturns

Quite brilliant article on the E-Consultancy website, explaining in some depth why the internet's favourite upstarts (Facebook, Twitter, Slide, Digg and the like) should not be smug about surviving a slump in the global economy.

The industry’s optimism stems from a belief that many of today’s hottest concepts either are recession-resistant or are developing moneysaving products that may have even more appeal during an economic downturn.

Full article: "Why the internet economy is not immune from recession"

This issue is equally relevant for the online travel sector, where the 'start-up' is in overdrive yet many have yet to realise their potential commercially, meaning potential backers may be nervous about investing.

This in turn poses an interesting dilemma: if 'start-ups' are less likely to succeed if investors shy away where will the innovation come?

Many believe real innovation comes from start-ups because the big players are too busy being, er, big.Kevin May, editor, Travolution