What Bubble 2.0? Try Babble 2.0 24 Oct 2005
42 comments Latest by Mike
Whatever. This is premature, cover-your-ass babble. Babble 2.0, not Bubble 2.0. Bad business decisions by a few don’t equal a bubble. Funding companies without a future isn’t a bubble, it’s crappy investing.
Building your company to be bought by ODEO (a “pre-revenue” company as VC David Hornik calls it), is a bad business decision, not a bubblicious red flag. ODEO may make it, but building to be bought by ODEO is just plain stupid.
Over promising and under delivering isn’t bubble fodder, it’s bad marketing. In any industry the vast majority of new business fail. That’s the business life cycle, not a bubble popping.
The real bubble in the late 90s was inflated by the public stock market. Any signs of bubble inflation today are coming from the private investment market. The VCs are the ones puffing up the valuations by way of their “enter-to-flip” investments. Why all of a sudden is a company worth more because a VC plows money into it? Got me. Are you worth more the more debt you have?
So for those with real products, real customers, and real revenues: press on. Don’t worry about those that don’t have what you have. Stay focused, stay lean, and stay in front. Let the rest worry about their own fundamental business problems.