BusinessWeek ran an article asking if we're in a bubble, again. It starts by citing Flickr co-founder Caterina Fake's post It's a bad time to start a company, which we weren't alone in writing about. The articles quotes some Venture Voice alumni who weigh in.
"There are lots of people saying: 'Gee, we're busy trying to build real businesses here, and people are wasting our time talking about whether this is a bubble,"
But the rising prices of Net startups are fueling a surge of me-too companies in hot areas such as social networking. With little investment required, these products are easily imitated. "We're in a company-creation bubble," says Joe Kraus, co-founder of Web publisher JotSpot Inc. "A lot of these companies will die."
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Yes the VC's are pumping money into all manner of Web 2.0 startups.
However, I notice that most of the investments are in the low $3 to $5 million range.
Hardly cause for alarm, don't you think?
Posted by: Adam C. Dudley at May 17, 2006 12:10 PM