The dot bomb era is the period of time following the dot com "bubble" of the late 1990's and into 2001. During the dot com era, Internet based businesses flourished. They were mostly funded by venture capital and banks looking to cash in on the Internet trend.
When the dot com bubble burst, hundreds of companies went completely out of business. Thousands of other companies laid off a large portion of their work force. It was a painful time in the technology industry, particularly for those who had planned their mortgages and/or retirements based on the prices of the technology stock they had been awarded or held in their stock portfolios.
Why the Bubble Burst
Some of the reasons often given for the dot bomb crash include the following:
- A general economic recession during this period.
- Findings of corporate corruption, and the subsequent bankruptcy, at several large companies, including a few large technology companies.
- The terrorist attacks of September 11, 2001.
The result was a long term recession, which hit the technology industry particularly hard.
What it means for Today
As a result of this time period, the shift in priorities in technology workers has moved. For example, more importance is placed now on base compensation and the value of a strong business plan, especially amongst workers that were "burned" during the dot com bomb.