The number of internet company closures and bankruptcies more than doubled globally in 2001, according to Webmergers.com, the US-based internet research group.

The sector was particularly badly hit in 2001 when the much-hyped internet bubble finally burst. Many companies in the technology, media and telecoms sectors experienced extreme financial difficulties and mergers and acquisitions activity declined severely. Even deals that did take place tended to be small, with a comensurate effect on fee income for investment banks.