Internet entrepreneurs used an approach involving the initial provision of free software, falling prices for data storage and computing, decreasing distribution costs, and providing an online service for almost nothing. However, many of these so-called Web 2.0 startups now have some experience in the marketplace, and they have realized that it takes real money to transform their ideas into a real business and turn a profit. Entrepreneurs should not confuse doing an experiment with building a large enterprise, says Rob Shurtleff, managing director at Divergent Ventures, a venture capital firm. Many companies will experience 2007 as the year in which this difference becomes very obvious. While they may have started out thinking they would be acquired by a company like Yahoo! Inc., in practice, of the many startups in any given category, only a very few will be bought out during their initial period of success. The experiences of YouTube and MySpace are exceptions. To make things even more complicated, basic costs like salaries, marketing, and real estate are increasing. The increase is fueled in part by the fact that so many firms started with nothing. If companies cannot prove their business models or differentiate themselves from the hundreds of other Web 2.0 firms in existence, they are unlikely to continue in business. There will be a major shakeup in the industry, which observers believe will really begin in 2008.