Cloud storage companies are sucking up investor money at a furious rate as they gird themselves to compete. And, naturally, not all of them will emerge victorious.
Even inside a bubble, you can operate with a rational business strategy by outwitting the other companies.
Guest Post No, not that kind of bubble. The bubble we’re living in is actually much more dangerous than the classic tech bubbles that inevitably come and go, because this particular bubble may well prevent American entrepreneurs from playing a leading role in shaping the future.
Here’s our roundup of the week’s tech business news. First, the most popular stories VentureBeat published in the last seven days:
Onstage at the TechCrunch Disrupt conference today, Roelof Botha, a partner at Sequoia Capital, looked back at one of the firms’ more controversial moments — the presentation that it gave to its portfolio companies after the financial crash in late 2008.
If LinkedIn represents a tech bubble, that bubble remained unpopped during the professional networking company’s second day of public trading. The company’s stock closed at $93.09 a share, just slightly below its close of $94.25 yesterday and more than double the price of between $42 and $45 set in its initial public offering.
Guest Post (Editor’s note: Jeff Bussgang is a General Partner at Flybridge Capital Partners. This column originally appeared on his blog Seeing Both Sides.)
Guest Post (Editor’s note: Brad Feld is an early stage investor and co-founder of Foundry Group. This story originally appeared on his blog.)
The bulls are back in Silicon Valley in a variety of ways. Let’s hope reports of the recovery are true and that the optimism doesn’t get overheated too fast and turn into a bubble of the dot-com era’s scale.
Tim Draper, the gregarious founder and managing director of venture capital firm Draper Fisher Jurvetson, says there isn’t reason to fear a big bubble in the technology sector just yet.
There is no bubble forming around Silicon Valley or tech startups because white-hot companies like Twitter and Facebook are able to show they have fundamental value and are capable of making money, Phil Black, co-founder at early stage venture capital outfit True Ventures told me today.
The hand-wringing continues over whether or not there is a venture capital bubble forming around hot new Silicon Valley startups. But the increased VC investing in tech is more likely the consequence of investors burned by the stock market getting into alternative investments, Marcus Ogawa, managing partner at venture capital firm Quest Venture Partners, told me today.
The New York Times ran a page one story today about how Silicon Valley appears to be in the midst of a new bubble, driven by the enthusiasm that venture capitalists and angels have for social networking and mobile apps businesses.
Forget the Web 2.0 bubble, which is in the process of bursting.
This year has become the “show-me” year. Internet start-ups showing no traction are getting shut down, or trimmed — abandoned by once wide-eyed investors.