I was certain this charade was going to explode in 2008/9 but it didn't and it even got bigger.
A guy I know mentioned the only thing that's going to pop this bubble is the Fed raising interest rates, which are near zero. That will severely limit the amount of money available for investments like these.
The problem is with a shitty job market and an economy that's doing bad almost everywhere else but tech odds are the government wont do anything that could risk heavily indebted California sinking into the sea because SV imploded.
Back to jobs, the amount of ex-something-else (not coders) turned watrepreneurs is staggering, and that's because they all want to ride the gravy train and "get paid". This is one aspect that's almost exactly like during the 1.0 bubble.
One scenario I think could pop this bubble is a new bubble in another industry siphoning the money from tech VCs to that other industry's investments. But it would've to be a revolution to beat the insane returns of some tech M&As.
But as long as there's people rushing in because they are afraid of missing the next instagram-like opportunity this is going to keep going.............until the "nextagram" explodes in a ball of fire burning everyone involved...
Then again chances are the guys who started this will get out mostly in one piece, since they already made their money. But like when the previous bubble collapsed there are going to be a lot of actually good startups with great ideas caught in the shitstorm, seeing their valuations drop to the price of a used geometro, and no way to get a loan let alone investments.
And the culprits? they'll be back the moment valuations get crazy again, and they'll make more money, again.
I was certain this charade was going to explode in 2008/9 but it didn't and it even got bigger.
A guy I know mentioned the only thing that's going to pop this bubble is the Fed raising interest rates, which are near zero. That will severely limit the amount of money available for investments like these.
The problem is with a shitty job market and an economy that's doing bad almost everywhere else but tech odds are the government wont do anything that could risk heavily indebted California sinking into the sea because SV imploded.
Back to jobs, the amount of ex-something-else (not coders) turned watrepreneurs is staggering, and that's because they all want to ride the gravy train and "get paid". This is one aspect that's almost exactly like during the 1.0 bubble.
One scenario I think could pop this bubble is a new bubble in another industry siphoning the money from tech VCs to that other industry's investments. But it would've to be a revolution to beat the insane returns of some tech M&As.
But as long as there's people rushing in because they are afraid of missing the next instagram-like opportunity this is going to keep going.............until the "nextagram" explodes in a ball of fire burning everyone involved...
Then again chances are the guys who started this will get out mostly in one piece, since they already made their money. But like when the previous bubble collapsed there are going to be a lot of actually good startups with great ideas caught in the shitstorm, seeing their valuations drop to the price of a used geometro, and no way to get a loan let alone investments.
And the culprits? they'll be back the moment valuations get crazy again, and they'll make more money, again.