By "The Sage":
Web 2.0 is about social collaboration (blogs, vlogs, wikis, user generated content [ugc]) using Ajax and Ruby on Rails and a nice looking logo with a name that is either missing some vowels or adding extra ones in (translation - no money to buy the properly spelled domain name and all the good domain names are gone). The business model is to get enough interest in it for a few months to get some VC backing to then go and use that VC money to purchase enough traffic from Google over the year and hopefully sell to Google, Google, or Google. Maybe Yahoo if Google passes.
The founders get 5% of their company, the VCs at the various stages get 95% and Google gets a lot more eyeballs to monetize of their adsense product. Those who get these eyeballs are more Web 2.0 companies that just received some VC funding and these VC funds are flush with cash because every 2 in 10 companies they fund ($50,000 to $5M with the average being $350,000) get sold for $20 to $50 million to Google or a profitable business.
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