Venture capital dried up virtually overnight, including at MeshNetics' parent company.
Foreign capital dried up in the crisis, so India relied on domestic savings, which amounted to almost 38% of GDP in the year to March 2008.
When inflows of foreign capital dried up, the economy's modern core imploded; big companies that had borrowed overseas found that their debts had ballooned to unpayable levels.
Those inflows of capital dried up; revenues plunged and deficits soared; and membership in the euro, which had encouraged markets to love the crisis countries not wisely but too well, turned into a trap.
In that view of the company, the question is less whether Uber is making a profit right now, but whether the company could, if access to capital dried up, retool it's aims and become profitable overnight.
The consequence was an explosion of venture capital, a rash of new Internet businesses, the dotcom mania and the speculative bubble that gripped the Nasdaq stockmarket up to March 2000, after which the market crashed and venture capital dried up again.What are the lessons from all this?
Between 2000 and 2008, the ratio of foreign debt to GDP dropped from 37% to 20% in Latin America and from 28% to 17% in emerging Asia, but jumped from 45% to 51% in central and eastern Europe.As foreign capital dried up, GDP fell by 4.6% in Latvia and by 3.5% in Estonia in the year to the third quarter of 2008.
Maybe it would have eventually succeeded, but we would never find out: With the market crash of 2000, capital dried up and the company was starved into a forced asset sale to Kaiser Permanente in 2001.
A few more years passed, and, after some initial excitement around the gig economy, follow-on venture capital dried up and many of TaskRabbit's competitors either shut down or were acquired for pennies on the dollar.
