In the mid- and late 1990s, business began to see the potential of the Internet. Using the Internet, companies could possibly reduce their physical presence and save money on human resources as well as the costs that are associated with so-called brick-and-mortar facilities. The Internet offered 24/7 access to goods and services, and a global market. So long as companies could build systems that would accommodate payment schemes and operated within the law, there seemed no limit to the financial success that New Economy companies could achieve.
Webvan did not suffer from a lack of financial planning: the company raised more money than any online retailer at the time¨1999¨except for Amazon.com. It attracted well-known venture capital groups such as Sequoia Capital, Softbank and Benchmark Capital. The company put together an ambitious plan for expansion that included 26 cities and that continued to reinforce the company's strategy of targeting high-income, busy professionals who could shop online and then have their groceries delivered at a convenient time. The company maintained this business plan and strategy, supporting its efforts with appropriate advertising and marketing, as well ("Private Equity," 2003).
Sullivan, B. (2003, April 22). eBay, Amazon privacy policies under fire. Computerworld. Retrieved 8 March 2005 from <>.