New Web entrepreneurs sure they will find a home

By Michele Gershberg

SAN FRANCISCO (Reuters) - From an online travel organizer to a real estate pricing game, the ideas of the newest Web entrepreneurs are still finding attentive ears.

Start-up companies at the Web 2.0 Summit this week displayed confidence that the Internet has become a big enough home, with hundreds of millions of users, for many of their projects to find a market.

While skeptics question whether Silicon Valley is again on the brink of a bubble burst, veterans say they no longer question the fundamental strength of the Web -- even though the failure rate will still be high for new companies.

Executives of some of the world's largest corporations came not only to seek new opportunities, but to court approval from the Web elite. For one, AT&T Inc Chief Executive Randall Stephenson was keen to show it was rapidly moving into Internet services from its declining base of traditional telephony.

"We all want the exact same thing. We all want this Internet thing to flourish," Stephenson told the crowd in San Francisco. "We want it to grow dramatically and rapidly."

The year 2007 has been a boon to some Web businesses, from a $10 billion consolidation of online advertising technology companies to the record $600 share price surpassed by Web search leader Google Inc.

Within a year, Wall Street watchers have raised the potential value of online social network Facebook from about $1 billion to a breathtaking $15 billion.

"The velocity of company creation has gone up so it becomes hyper-competitive. The success rate will not be high," said Steve Case, a founder of the AOL Internet service and now chief executive of a new payments company, Revolution Money. "Twenty-five years ago, we were dreaming of a day like this where (the Web) would be taken for granted."