There have been further concerns that many dot.com companies are likely to be liquidated because they have not started to earn profits before burning their flotation capital.
Adabra, the a community shopping website, follows boo.com in calling in the liquidators. Adabra has now been sold to a French company for £220,000. Cubic Egg, the e-department store, has called in accountants after getting into trouble.
Many dot.com companies raised investment capital in the last year on the crest of a South Sea wave, with a view to flotation. Because the tide of investor sentiment is now flowing the opposite way, such companies are finding they cannot get the second round funding.
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