'It was all my fault': VC says sorry for dot-com boom and bust

John Doerr, the leading light of the US venture capital scene, has issued a public apology for statements he made that "may have led" to the rapid boom in the dot-com sector.

Doerr is credited for his part in the late 90s phenomenon that, for a while, turned the dot-com suffix into a licence to print money.

However, his assertion that the internet was "the largest legal creation of wealth in the history of the planet" has now been modified by Doerr himself to read "the largest legal creation (and evaporation) of wealth in the history of the planet".

According to the San Jose Mercury News, Doerr began a speech to Democrat congressmen and industry leaders yesterday with the words: "I'm here today with something of an apology..."

Doerr admitted that his words may have led to the feeding frenzy in the dot-com sector and the subsequent crash of over-hyped stocks. He said placing the emphasis on wealth over innovation made the marketplace "mercenary" and intent on rapid returns on investment rather than incubating businesses and developing the fledgling technology.

Doerr was speaking to Democrat politicians, urging them to remain believers in the New Economy and said, despite the bloodshed on the markets, it will emerge from recession - though predicted this may take until as late as mid-2002.

He added that there will be a lot more "pain" between now and then.