The Dotcom Bubble — also known as the Internet Bubble or Tech Bubble — was a period of extreme speculative excess in global equity markets, primarily between 1995 and 2000, during which the valuations of internet-based and technology companies reached extraordinary levels far detached from underlying revenues, earnings, or business fundamentals. Driven by the widespread belief that the internet would fundamentally transform commerce and that first-mover advantage would create winner-takes-all monopolies, investors poured capital into any company with a '.com' suffix, often at price-to-sales multiples of hundreds of times with no path to profitability. The bubble peaked in March 2000 and subsequently collapsed, with the Nasdaq Composite Index falling approximately 78% by October 2002, wiping out trillions of dollars in market capitalisation and bankrupting thousands of internet companies. The Dotcom Bubble remains one of the most instructive case studies in market history on the dangers of narrative-driven investing, valuation indiscipline, and speculative excess — lessons that are directly relevant for Indian investors on Ventura Securities evaluating high-growth technology, new-age, and loss-making internet businesses at premium valuations today.
