Web 2.0 has been picked up as a term by the entrepreneurial community and its corollaries in venture capital, the press, analysts, large media and Internet companies, and Wall Street to describe a theoretical new category of startup companies.

What happens when startups start getting referred to as "Web 2.0 startups", is that trends are getting mistaken for markets and productsSpending too much time thinking about trends and "spaces" is a great way for an entrepreneurial team to go right off the rails and bring another derivative product to market, which the market then promptly ignores.

As a result of the widespread adoption of language like "Web 2.0 companies" and the "Web 2.0 space" -- and startups referring to themselves as such, most of which will fail -- you get a predictably cynical backlash from people who then dismiss the whole category as trendy marketing hype full of me-too wannabes and in the process throw out the baby with the bathwater and dismiss all the legitimately new and exciting products and companies that are being created all around us.

Get the full story at Marc Andreessen's blog