Is There a Bubble in Web 2.0 Startups?

#1

Post by damienhoffman » Tue, Oct 12, 2010, 7:42 PM UTC

Is There a Bubble in Web 2.0 Startups?
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Re: Is There a Bubble in Web 2.0 Startups?

#2

Post by kls » Tue, Oct 12, 2010, 10:01 PM UTC

This is not a bubble, a bubble is when any idea no matter how stupid or how long the sunshine laden plan will take to break even, gets funded. I think there is an "we will make money off of ads" bubble, but that it localized to a segment of the web.

Re: Is There a Bubble in Web 2.0 Startups?

#3

Post by damienhoffman » Wed, Oct 13, 2010, 4:27 AM UTC

kls wrote: post #2

This is not a bubble, a bubble is when any idea no matter how stupid or how long the sunshine laden plan will take to break even, gets funded. I think there is an "we will make money off of ads" bubble, but that it localized to a segment of the web.

I would say an expertise of mine is analyzing bubbles. Web 2.0 definitely has a ton of funding in companies that are moving further down the quality chain. Also, the supply of investment is absolutely a sign to watch.

With that said, bubbles can last years.