[kls]

By 99 the market was beginning to turn, the acquisition period was behind most companies and it was beginning to look like a duck and cover environment. I would imagine that this is why they decided to pass on the purchase. It was the beginning of the end by that point.

While stocks where still climbing into 2000, I remember venture money becoming very scare in 99. In mid 99 there was a brief downturn and then stock rallied to astronomical levels through the end of 99 into 2000. I remember that brief blip as serving as a writing on the wall that the party was almost over. Things tightened up at a lot of places right after that event.

So while valuations where up, acquisitions and new ventures where down significantly. That was an strange time to be in the industry, because it seemed like everyone knew it was coming, but no one wanted to dare utter it.