Meaning: Vinton Cerf, often referred to as one of the "fathers of the Internet," made the statement, "First of all, in terms of investment in Internet-related developments, venture capitalists - once burned - are now very cautious and are investing in areas that actually make business sense." This quote reflects the cautious approach taken by venture capitalists in the wake of the dot-com bubble burst in the early 2000s.

During the late 1990s, the rapid proliferation of Internet-related companies led to a speculative frenzy, with investors pouring billions of dollars into startups with little or no proven business models. This period, known as the dot-com bubble, ultimately resulted in a market crash, causing widespread losses for investors and the collapse of many high-profile tech companies.

Following this experience, venture capitalists became more discerning in their investment decisions. They shifted their focus towards areas that demonstrated clear potential for sustainable business growth and revenue generation. This shift in approach was driven by a desire to avoid the pitfalls of the dot-com era and to ensure that investments were made in ventures with solid foundations and long-term viability.

Vinton Cerf's statement underscores the importance of making strategic and prudent investment choices in the realm of Internet-related developments. It highlights the need for investors to prioritize sound business fundamentals over speculative hype and to carefully assess the potential for tangible returns on their investments.

In the years following the dot-com bubble, venture capitalists have increasingly directed their funds towards areas such as e-commerce, cloud computing, cybersecurity, and software as a service (SaaS). These sectors have demonstrated strong growth potential and have provided more reliable investment opportunities compared to the speculative ventures of the dot-com era.

Moreover, the emphasis on "areas that actually make business sense" reflects a shift towards investments in technologies and platforms that address real market needs and offer practical solutions for businesses and consumers. This approach aligns with the broader trend of investing in companies that have clear value propositions and sustainable revenue models, rather than those driven solely by hype or speculation.

Cerf's observation also speaks to the evolving nature of the tech investment landscape, as venture capitalists adapt their strategies in response to market dynamics and lessons learned from past experiences. The caution exercised by venture capitalists in the aftermath of the dot-com bubble has contributed to a more disciplined and rational approach to investing in Internet-related developments.

In conclusion, Vinton Cerf's quote encapsulates the shift in mindset among venture capitalists following the dot-com bubble, emphasizing the importance of investing in areas that exhibit genuine business potential. It serves as a reminder of the enduring impact of past market upheavals on investment behavior and the ongoing quest for sustainable and impactful technology investments.