Assessing online businesses
As with all new companies, it is difficult for investors to assess the long‑ term sustainability of start‑
ups. There are a number of approaches that can be used to assess the success and sustainability of
these companies. There have been many examples where it has been suggested that dot‑ com com‑
panies have been overvalued by investors who are keen to make a fast return from their invest‑
ments. There were some clear anomalies if traditional companies are compared to dot‑ coms.
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