Dot-com belly-up numbers down

Internet business failures have slowed to their lowest rate for a year and a half, according to new research.

Only 54 internet companies shut up or went bankrupt in the first quarter of 2002, less than a third of the figure for 2001, when 164 internet companies breathed their last.

In March, 17 companies closed their doors, the lowest monthly figure since August 2000, and less than a third of the casualty statistic for May 2001, when a total of 64 internet companies went under.

The statistics were compiled by research company Webmergers, which monitors acquisitions, mergers and shutdowns of internet companies that have achieved formal funding from venture capitalists or angel investors.

This quarter's casualties included Shop.cz, the Czech Republic's oldest e-tailer, which has bowed out after what the survey describes as "a profit-free existence that dates back to 1995".

The quarter also saw the demise of 800.com, an electronics e-tailer of 1997 vintage which was said to be close to positive cash-flow, but nonetheless failed to secure a sixth round of funding.