The decline of online businesses begins to slow

The death rate of Internet businesses appears to be levelling out, according to research from Webmergers.com. Apparently in June only 53 online ventures shut their doors, compared with 54 companies in May and 55 in April.

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By  Greg Wilson Published  July 31, 2001

The death rate of Internet businesses appears to be levelling out, according to research from Webmergers.com. Apparently in June only 53 online ventures shut their doors, compared with 54 companies in May and 55 in April.

Speaking to Silicon.com, Tim Miller, president of Webmergers.com attributed the leveling out of causalities as the effect of two overlapping trends of shutdowns — the last of the B2C sites shutdown and the increase of B2B closures.

B2C sites has accounted for 49% of Internet-business closures, compared with 73% last year. The volume of B2B closures has risen to 33%, compared with 22% during 2000.

“The worst is over for the B-to-C sector, but it's far from done,” says Miller, “and most people expect that B-to-B is going to shake out for a while.”

While the worst of the mayhem may be over, there is still no doubt that 2001 has been a rough year.

According to the report, 330 companies have gone belly up in 2001 so far, compared with 225 in all of 2000. That's nine times as many shutdowns in the first half of 2001 than in the first half of 2000.

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