Dot.com Price Bubble for the Venture Capital Growth of Digital Companies

Abstract

Today, innovation performance is an important determinant of competition power and national progress. In the beginning of major innovation, new firms are created to benefit from new digital technologies, and investment and employment in the related industries is increasing. Venture capital (VC) plays an important role in financing venture businesses in the high digital technology sector. The VC market is now accessible at any point in history for ventures. Partly due to the rise of digital entrepreneur incubators, risk capitalists have spread throughout the spectrum. The new digital technology creates an almost constant balloon known as “tech bubble” or “dot com bubble,” which caused economic turmoil in the American stock market in the late '90s. Venture capital companies will be informed about market activity, price bubble history, risk capital, and price bubbles that can have a major impact on their business.