Answer :
The first Internet incubator that helped launch notable companies like CarsDirect.com was GeoCities, which allowed users to create web pages while generating revenue through ads. However, many businesses from the dot-com boom, including incubators, faced bankruptcy after the bubble burst, an event signified by the term 'irrational exuberance'.
One of the first Internet incubators that helped launch companies such as CarsDirect.com, Overture, and Tickets.com during the dot-com boom of the 1990s was GeoCities. GeoCities, founded by David Bohnett, was pivotal in this era, allowing users to create free web pages within thematic communities while generating revenue through advertising. This model reflected the typical dot-com boom business strategies that were heavily reliant on venture capital and high initial public offerings, with many such companies seeking sustainable revenue streams through diversification in later years, such as adopting a freemium model.
Despite the innovation and high prospects associated with the Internet incubators of the time, the later dot-com crash caused many businesses to go bankrupt, affecting the market and investments. This market phenomenon was termed as irrational exuberance by Alan Greenspan, highlighting that the success of these business models was not always indicative of their eventual survivability or long-term growth.
