On a chilly Saturday evening in San Francisco, Yelp.com founders Russel Simmons and Jeremy Stoppelman were hosting a loft party to watch an annual fireworks show. Crammed into the tight space were thirtysomethings from the first Internet wave such as James Hong, who started online dating site Hot or Not in 2000, and his close friend Max Levchin, who co-founded PayPal and sold it to eBay in 2002 for a cool $1.5 billion. Jonathan Abrams, who started Friendster, the first hyped social networking site, was there too, as were Digg's Kevin Rose (left) and several up and coming Google-ites. It was a rare Internet all-star party—the kind of gathering not seen for years in the valley. Yet this is hardly 1999-redux. It’s the new Internet scene, a tenuous balance between growing hype and harsh memories from the dot-com bust of 2000. These aren't the khaki-clad MBA dropouts that clogged Highway 101 six years ago. They're the geeks who write code because they love tech and the Internet. The memory of "the bust," as it's called in Silicon Valley, is still fresh and most of these entrepreneurs, young as they are, lived through it. They’ve learned harsh lessons about relying on paper riches, spending millions on lavish offices, and giving too much power to the venture capital set. As they build what they hope will be the next big Internet powerhouses, they vow to do it all differently.