Yet again I was asked today to define the term WEB 2.0 and because my inquisitor was a professional investor with little technical background I felt compelled to come up with a good, crisp and non-technical answer. The investor in question also passed on a little humor, that has been running around the net, in that she inquired drolly whether she would loose twice as much money investing in WEB 2.0 businesses as she had done by investing in WEB 1.0 businesses. It came to my mind that this piece of humor is unfair because  a  particular feature  of well constructed WEB 2.0 businesses is that they tend to have low variable costs  (particularly marketing and capex).  The perfect response then hit me as I mused on this point… so I said… " Oh no thats the difference right there! WEB 1.0 was all about BURNING cash whereas real WEB 2.0 businesses ...