Disruptions: Start-Ups Keep Revenue at Zero to Cash In on Acquisition – NYTimes.com:

Indeed, this madness was invented in the late ’90s and helped perpetuate the first dot-com meltdown. “Mark-to-mystery was developed as a large part of the last bubble, but it’s gotten a lot worse this time around,” Mr. Kedrosky said.

When this next bubble pops — and it will pop — the idea to make no money can finally pop, too. Then investors can start working with companies to build businesses that have long-term financial goals, instead of just building a short-term mystery.

Source: Daring Fireball