Not so healthy

As a former journalist, Robert Norton is acutely aware of the good copy that his story makes. "We have been a bit of symbol of the times," he admits. "The speed with which we raised our funding, and then the fact that we were gone relatively quickly ..." He allows himself a big grin.

ClickMango, the natural health website started by Norton, now 29, and his business partner, Toby Rowland, had famously raised £8m just eight days after the pair had begun to look for funding.

It was a tale that they were happy to spin at the time, but which came back to haunt them when they started to look for second-round financing. "This time I knocked on 100 doors over three months and we couldn't get even a penny," Norton says. Despite the high-profile endorsement of the actress, Joanna Lumley, ClickMango closed just four months after its launch.

The website's original business plan had forecast breakeven in year four, but as market conditions worsened, investors started to change their criteria. "People were looking for the next big thing, which at that time was business-to-business websites."

It was important for Norton that the operation closed while there was still enough money in the bank to pay creditors and staff, and he says that he has not been deterred from attempting another start-up. He is currently doing consultancy work for other dot.coms, and his experiences are to be used by the London Business School. He won't, though, be looking for a full-time job. He and Rowland want time to work on new ideas.

"The past year has been a journey, and one that has prepared us to do other things we wouldn't have been able to do, and also to take responsibility when things don't work out as you hope. How you manage yourself on the way down is as important as how you do it on the way up."
David Teather

Built to last

Brent Hoberman's father had told him the idea was "useless". His eventual business partner, Martha Lane Fox, needed some serious cajoling to give up her job and join him.

Yet five months after our last survey, and at the height of dot.com frenzy, Lastminute.com, a website aimed at compulsive consumers, floated on the London stock market valued at around £600m.

Less than two years old, heavily loss-making and with a turnover of less than the average pub, it managed to create huge excitement among private investors chasing dot.com fortunes.

In the process it transformed Hoberman, now 33, and Lane Fox, 28, who had previously held down unspectacular jobs at relatively anonymous media companies, into national celebrities. The photogenic young founders, who mercilessly courted publicity and were notionally worth almost £100m between them when the company floated, became an obsession for a national press that was bored by suited businessmen and pored over every inch of their personal lives.

When the internet bubble burst, one paper even took to charting the fall in Lane Fox's wealth on a daily basis. "It's been relentless," she says. "The media attention, the technology issues, the decisions, the growth - it's just been a relentless period. At times it's been difficult, but overall it has been an incredible and hugely varied experience which I feel very fortune to have experienced and at a relatively young age."

Shares in Lastminute have fallen spectacularly since the flotation, and have lost more than 90% of their one-time value. Many private investors feel that they have had their fingers burnt, but Lane Fox has pledged that better times are ahead.

"We've come a very long way and are forecast by analysts to turnover £150m this calender year. This is a company which has really come to fruition and is going to succeed."

Following the acquisition of a rival in France, Lastminute is now Europe's biggest internet travel firm and one of the continent's best known dot.com brands. Three million people receive email from the firm every week.

Today, Lane Fox still works at least 12 hours a day, seven days a week, and spends much of her time travelling to Lastminute offices which are spread across seven European countries. Last week it was two days in France; this week, Sweden; next week, Germany.

She insists that, of course, she buys from the Lastminute website. "The stewardess are always amused that I'm crammed right at the back of the plane on a Lastminute ticket."

Previously based on Oxford Street in London, they have now moved to a building overlooking Buckingham Palace. "The rent's cheaper," she explains. "We've still got the football table and all the offices are open plan, so some things stay the same."
John Cassy

A sporting chance

Rob Hersov was a pin up for many budding internet entrepreneurs. The 40-year-old South African set the blueprint for thinking big with Sportal, a network of sports websites which attracted investment from the likes of Bernard Arnault's Europ@web and BSkyB. The business raised more than £50m through two fundraisings, established operations thoughout Europe, Asia and Australasia, and employed 300 people.

Last year the company pulled off a coup by winning the rights to be the official website for the Euro 2000 football championships, and attracted the attentions of French pay-per-view television group Canal Plus. Hersov was weeks away from selling the business for around £280m. Then the market imploded and the deal was off. Now Sportal is down to 220 staff, and trying to raise a third round of funding. If it fails, it faces closure.

"No one is immune to what's going on," Hersov says. "Financing dried up, strategic buyers dried up. There is a complete lack of confidence."

Hersov says the company needs just £5-6m to break even, but is finding it difficult to attract investors. "If we get it, we're heroes. If we don't ..." A deadening silence. "This is an immediate issue, not something we face in six months' time. It's very frustrating. In a lot of cases businesses are closing down just as they approach break even because the venture capital community is in denial."

Hersov is a good friend of that other South African internet entrepreneur, Lastminute.com's Brent Hoberman. "It's been interesting seeing who has stuck with it and who has jumped in the past four months or so when there has been the most pressure. Some jump, some stay with you in the bunker."

Hersov is involved in a number of other start-ups, including Ant Factory, an incubator for start-ups. But the past three years have been a set-back financially. "My wife has said, 'Why not get a nice corporate job with business class flights?', but I've got the bug."
David Teather

Part 1 of the e50

Richard Downs, 34
Iglu.com
What does it do? Provides online ski accommodation.
How it's gone: Downs says the business is close to profitability. Some "natural attrition" of staff as the business has shifted focus, but has benefited from being a specialist site and not depending on advertising.
Valuation: Second-round funding in July 2000 of £2.7m, taking total to £6m. Downs and other management hold less than 40%. At last valuation, his stake is likely to have increased from £2.4m to around £5m.

Ernst Malmsten, 30, and Kajsa Leander, 31
Boo.com
What does it do? Sportswear retailer.
How it's gone: Bust. The online fashion firm was the highest profile dot.com casualty as it burnt around £70m in record time and put 300 people out of jobs. The duo who wanted "to bring beautiful clothing to the world" are now writing a book on how it all went wrong.
Valuation: Worth around £10m each last time around; today, maximum of £1m between them from previous ventures.

Carol Dukes, 38
ThinkNatural.com
What does it do? Sells natural health and beauty products.
How it's gone: Expanded in the UK and launched in Germany. Growth slower than hoped, but has "money in the bank for a year at least". Moved into mail order, revenues now split with online. Superdrug is an investor and own-label products to be launched in store.
Valuation: Raised £10m in second round of financing in May 2000, valuing business at £35m. Four directors share £10m stake.

Daniel Gestetner, 29
ShopSmart
What does it do? Shopping portal that acts as a guide to retail sites.
How it's gone: Grew from 12 to 80 people. Three months ago decided to seek a buyer or merger, finally agreeing a deal with Barclays Bank venture IndigoSquare a month ago. Uncertain whether Gestetner will work for the new set-up.
Valuation: Talk of a stock-market flotation, valuing the business at £200-£300m. Eventually sold for £1m in cash and 10% stake in the combined company. Gestetner and other directors held less than 50% at sale.

Simon Murdoch, 39
Episode 1 Partners
What does it do? Provides financial backing and advice for internet start-ups.
How it's gone: Former boss of Amazon.co.uk, Murdoch set up £70m venture capital fund with investment bank JP Morgan. Invested £17m in nine businesses, but only one so far this year - the marketing services company, The Works.
Valuation: Made an estimated £5m from sale of Bookpages to Amazon. Rich enough never to have to work again.

David Lethbridge, 37
Confetti.co.uk
What does it do? Provides wedding services, from gifts to dresses to honeymoons.
How it's gone: Bought the second and third players in the online wedding market in October, as well as gift mail order business, Burley House. Recently launched in Germany. Says there is enough money in the bank to see the company through to profitability, depending upon expansion plans. Up from 20 to 60 staff.
Valuation: Valued last year at £20m. Lethbridge had one-third 18 months ago, now "significantly less".

Michael Ross, 32
Easyshop
What does it do? Sells underwear.
How it's gone: The online lingerie business has had a tough time but is still trading healthily. Having changed name to figleaves.com, raised £4m and is planning expansion in the US. The former management consultant admits he sometimes covets the security of his old job.
Valuation: From around £5m last time to £1m today.

Ewan Macleod, 23
Liv4Now.com
What does it do? A portal catering for "youth" leisure interests such as clubs and bars.
How it's gone: The community website raised £700,000 in November 1999. Employs 10 people and Macleod says it is already close to breaking even, with cash still in the bank. Launched an outsourcing division and manages community sites for the likes of Handbag.com and World Online. Partner Serena Doshi now part-time.
Valuation: Still has a significant stake in the business as only one round of funding.

Xavier Azalbert, 36
First-e
What does it do? Online banking.
How it's gone: Has attracted £37.8m investment. In November last year Azalbert left to took over at Xelector, a Dublin-based provider of comparison-shopping technology for the net, which raised £15m to finance a pan-European expansion.
Valuation: New company worth £175m, but Azalbert's stake unknown.

Ziad Salem, 27
Future Internet Technologies
What does it do? Provides software that stores company databases online.
How it's gone: Floated in June last year and raised £3m from the sale of shares in web business Ant Factory. In October acquired AnytimeNow as a brand for Future Internet Technologies.
Valuation: Was worth £3m, similar today.

Paul Barry-Walsh, 44
Netstore
What does it do? Data warehousing via the internet.
How it's gone: Floated on the stock market in April 2000, reported a loss of £1.1m and is valued at £27m. Barry-Walsh also sold his computer disaster recovery firm, SafetyNet, last June, pocketing £70m, and used the proceeds to set up a charitable foundation called Fredericks. Invested in 10 companies, hoping the money raised will fund the foundation.
Valuation: Around £87.5m last time, now nearer £70m.

Dylan Wilk, 27
Gameplay.com
What does it do? Sells computer games via direct mail and over the web.
How it's gone: Wilk has ridden the dot.com rollercoaster. Gameplay's valuation jumped from £60m to £130m but has since slumped to £18.2m as it struggles to work out what its long-term future is.
Valuation: Still has the £2m cash he got from selling his mail-order computer game business to Gameplay, and drew a £76,000 salary until quitting last week. Shareholding worth £3m last time, now worth just £1m.

Steve Bennett, 34
Jungle.com
What does it do? Retails computer software, music, videos and games.
How it's gone: Once tipped for a £700m flotation, Jungle was sold last September to Argos owner Great Universal Stores for £33m, with Bennett pocketing around £11m. Still working for Jungle but has other ideas up his sleave. Working on Globalshed.com, a DIY portal, with friend and former Big Breakfast presenter, Johnny Vaughan.
Valuation: Steady at around £15m.

Mark Bernstein, 40
Gameplay
What does it do? Online games portal.
How it's gone: A rollercoaster ride. Won the backing of giants BSkyB, BT and Dixons and looked set for a multi-million pound fortune. But losses have forced Gameplay to cut hundreds of jobs and put itself up for sale.
Valuation: Down from £7m to £1.5m.

Robert Bonnier, 30
Scoot.com
What does it do? Online equivalent to Yellow Pages.
How it's gone: The Dutch-born entrepreneur looked to have pulled off a coup when the online directory service won the backing of media giant Vivendi Universal last year. Scoot shares soared, valuing the firm at more than £2bn, and Bonnier at £140m, but have fallen sharply since then and the company is now thought to be looking for a buyer.
Valuation: £4m.

James Corsellis, 30
Icollector
What does it do? Online auction service.
How it's gone: Corsellis moved from CEO to become deputy chairman in January 2001. Icollector entered into joint deals with CNN and the FT. In September sold their web consultancy business, CM Interactive, which raised capital to be invested back into the business. Launched joint site with ebay, which brought in 29 million customers. They now represent 100 auction houses and recently had 1,200 people bidding online.
Valuation: "The value of the share price has dropped by about 90% plus, and I don't even bother to look any more."

Nick Denton, 35
Moreover.com
What does it do? Aggregates news sources from 1,500 company websites.
How it's gone: Has secured the backing of Reuters, admits times are tougher, but claims Moreover has enough cash to see it through to profitability. Pocketed a few hundred thousand pounds from the sale last summer of network ing club, First Tuesday.
Valuation: Paper fortune of around £10m, up from £3m, but not yet turned into cash.

Jason Drummond, 31
Virtual Internet
What does it do? Gets businesses online, working with FTSE 100 companies.
How it's gone: Set up with £10,000 savings six years ago, and briefly valued last year at £240m. The Porsche-driving father of two has grown revenues and customer numbers, but the company is still loss-making.
Valuation: Down from £40m to £9m.

Nick Gilbert, 32
NewsNow What does it do? Collates news headlines from other news websites.
How it's gone: Now collates headlines from more than 800 sites, but company growth unknown. Gilbert is still involved in NewsNow, but declined to answer any questions.
Valuation: Was £4m, likely to be less now.

Adam Gold, 31
Obongo
What does it do? A next generation passport or e-wallet.
How it's gone: His Silicon Valley based e-wallet firm has grown steadily but has reportedly been put up for sale for £300m. Established on the West Coast as one of the leading British entrepreneurs, but unlikely to make the US his long-term home.
Valuation: Undisclosed, but like former flatmate Nick Denton (qv), pocketed few hundred thousand pounds from First Tuesday sale.

Abby Hardoon, 38
Magic Moments
What does it do? Helps companies on to the web.
How it's gone: Listed on the stockmarket and then last May acquired main competitor, WebFusion, which doubled the number of clients. Acquired another firm in Germany, and now employs 79 people.
Valuation: About £4m.

Paul Sykes, 57
Internet investor
What does he do? No longer a net player.
How it's gone: The no-nonsense Yorkshireman told us last time that he planned to quit the internet because the bubble was about to burst - and was as good as his word. Devotes his time to fighting the euro.
Valuation: £425m.

Tim Jackson, 34
QXLcom
What does it do? Online auction house.
How it's gone: Quit to become a venture capitalist. His QXL shareholding soared to £272m in his absence - and then lost 99% of its value in he crash. He recently resigned his venture capital position, now concentrating on his newspaper column.
Valuation: Worth £37m last time round. Now closer to £3m.

Danny Kelly, 44
365 Corporation
What does it do? Provides online sports, entertainment and lifestyle news.
How it's gone: The business has transformed from a frontier entrepreneur operation into an established public company, but is valued at a fraction of its former £500m. "I have to survive on my salary and I have resisted the temptation to buy yachts and islands."
Valuation: From £10m to less than £1m.

Becky Lancashire, 30
Clickmusic What does it do? Independent music search engine and directory.
How it's gone: "Fantastically well," she says, but no financial details given. Last summer, value was estimated between £8-12m.
Valuation: Up from £1m to £2m.

Stuart Lawley, 37
Oneview.net
What does it do? Provides service for small businesses wanting to get on the web.
How it's gone: Taken over by freecom.net in May last year, and Lawley was set to head the company's US operations. He sold his house and was on his way to the Bahamas for a family holiday when the deal unravelled and he resigned. He has not returned from the US and it is not known what he is doing now.
Valuation: Unknown.

Wayne Lochner, 44, and Terry Plummer, 51
Affinity Internet
What does it do? Provides internet access.
How it's gone: Shares soared shortly after our first profile, briefly valuing the two men at almost £500m each. But toughter competition has hit the shares, which have fallen heavily.
Valuation: From £17.5m each last time to £18m today.

Dr Mike Lynch, 35
Autonomy
What does it do? Provides software to categorise information on the internet.
How it's gone: Was worth just £310m when we first profiled Lynch, but soared to £5bn last year and he almost became a billionaire. Customer numbers are at a record high, but missed profit forecasts and a slowing economic environment have since shattered share price. Now worth around £500m.
Valuation: Lynch cashed in £50m shares last year and still has a holding worth £90m.

Paul Lindsay, 43
The eXchange
What does it do? Provides online financial services.
How it's gone: Lindsay made a paper profit of £12.2m when eXchange Holdings floated in August 1999. Shares soared from the 200p issue price to as high as 385p in December 1999, valuing the business at £841m. Has since changed its name to MoneyXtra, and called in investment bankers last September to advise on a sale or break-up of the business.
Valuation: £51m.

Dan Metcalfe, 37
Fortune City
What does it do? Provides community website hosting.
How it's gone: Metcalfe is now vice chairman of Fortune City, the 14th biggest website network in the world. Involved in a financial network and an Internet infrastructure company. Metcalfe still holds a 6% stake in the company.
Valuation: Unknown.

Jan Murray, 52
Internet Technology Group
What does it do? Internet access provider.
How it's gone: Murray has just sold the company to US firm Concentric for £146m, making himself £41m. He has since set up Red Wave to acquire the non-ISP properties of the Internet Technology Group. Redwave was taken over by Wave European Technologies last November, and is now based in the Channel Islands.
Valuation: £50m.

Charles Nasser, 31
ClaraNET
What does it do? Internet access provider to UK and Europe.
How it's gone: It is still going but has fallen in valuation from more than £300m to around £50m. Nasser has achieved his ambition of expanding into Europe by opening offices in Paris, Frankfurt and Barcelona. Customers include 600,000 consumers and 20,000 businesses. Replaced his last car (16 years old) with an 11-year-old Chevrolet.
Valuation: £40m.

James Page, 30
Deckchair.com
What does it do? Provides online travel service.
How it's gone: Page left the online travel business he founded with Live Aid organiser Bob Geldof last year and is now working in Australia on a new venture. Deckchair was valued at £30m at the time - with Page holding 50% of the shares - but fell sharply in value as dot.com hype disappeared. Sold to rival World Travel Corporation for around £3m in March.
Valuation: Down from £15m to £1m.

Rouzbeh Pirouz, 29
Mondus.com
What does it do? Provides online business matchmaking service linking supplier and customers.
How it's gone: The company has continued to grow under the guidance of the former Rhodes Scholar, who put his degree in oriental studies on hold. Raised £100m from Seat Pagine Gialle of Italy, and the firm is valued at £260m, and has 120 employees. Expects a profit late next year. Still has the same girlfriend but has bought a BMW convertible. "It was secondhand with 50,000 miles on the clock, though," he says.
Valuation: Pirouz was worth £10m last time out. Closer to £30m today.
Research by Laura Milne

Useful link
Who's who: The original e50 list