What explains the rapid growth in private investment in ecom

What explains the rapid growth in private investment in e-commerce firms in the period 2011–2012? Was this investment irrational?

Despite the popularity of Facebook, why was its IPO deemed a failure?

Solution

E-commerce is the way of doing business through digital connection.

Investments in E-commerce were increased during the period 2011 and 2012. Since then the country was facing recession and private investments were very hard to get. It was the phase of financial crunch. Once the recession is over (2011—12) people used to return in the normal situation and start investing.     

The investment was not irrational, because it increases in the subsequent years too. Till date it is improving.