We're in Another Tech Bubble

Analysts: Just look around Silicon Valley for proof
By John Johnson,  Newser Staff
Posted Mar 19, 2011 4:42 PM CDT
Look out for the pop.   (Shutterstock)

(Newser) – Don't look now, but another tech bubble is upon us. Signs "have been appearing over the last year—seed and late-stage valuations are rapidly inflating, hiring talent in Silicon Valley is the toughest since the last bubble and investors are starting to openly wonder how this one will end," writes Steve Blank in the Huffington Post. A USA Today analysis agrees, noting investors' insatiable appetite for web startups and the coming swarm of IPOs, though it says things aren't nearly as crazy as they were in 2000.

Financial blogger Paul Kedrosky even has a list of Top 10 signs the valley is getting a little nuts, everything from "fawning" coverage on CNBC, to "everyone you know has a startup," to his No. 1 piece of evidence: "journalists are quitting journalism for startups." Blank, meanwhile, offers a backgrounder on the previous bubble and what he calls the "new rules" for this one (including the fact that companies can no longer sell just "vision"). Click for that.

My Take on This Story
Show results without voting  |