This study explores the effect of strategic choices and resource combinations on new-venture survival during an Entrepreneurial Boom and Bust (EBB) period. An EBB is a period of rapid expansion of an industry in terms of number of players, fueled by expectations of high returns occasioning a considerable infusion of resources, followed by a sudden change in industry prospects and consequent reallocation of those resources. The result is that in an EBB a large proportion of new business organizations fail shortly after being formed. Although considerable research has been conducted at the industry level as to why the boom-and-bust phenomenon exists, we do not yet understand the mechanisms by which some firms deal successfully with this acute environmental shift while others fail. An in-depth study of 104 e-consulting firms from 1997 to 2001 and 85 investment management firms from 1927 to 1931, combining range of data sources and analytical tools-archival and interview-based data, cluster analysis, multilogit models, probit regression models - yields insights on new-venture strategies at industry inception and the effects of the strategies and initial endowments on venture success. First, the study identifies a typology of new-venture entry strategies. In the e-consulting industry, it finds that firms followed four strategy archetypes - Conservative Growers, Focused Consultants, Expansionists, and Aggressive Acquirers. Further, differences in strategic behavior reflect differences in resource endowments, and these differences are systematically associated with differences in performance. Whereas Conservative Growers and Focused Consultants were most successful in weathering the contraction phase, Expansionists and Aggressive Acquirers were the most susceptible to failure. A parallel analysis of the investment management industry during the 1920s yields strikingly similar results; the few differences may reflect structural differences between the two industries. Second, the study shows that resource configuration and strategic patterns in both the expansion and decline phase of the industry influence a firm's ability to adapt to the sudden environmental change. Strategies that offer a wide range of services ensure a better chance for survival; moreover, industry knowledge rather than entrepreneurial experience is crucial to the survival of a firm in such turbulent times.