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Crazy valuations for startups like WeWork remind me of the Dot Com bubble, when companies put up a shiny new "high tech" facade in front of entirely traditional
by dunpeal 8y ago
Crazy valuations for startups like WeWork remind me of the Dot Com bubble, when companies put up a shiny new "high tech" facade in front of entirely traditional business models, then expected to be valued at a large multiple of a normal company with that well trodden value proposition.
We all know how well that ended.
Companies that want the sky-high valuations of innovative high tech should be, you know, actually innovative and high tech. Just because your company has web 2.0 trappings (or ends in .com) doesn't automatically entitle you to "high tech" and "innovative" valuations.
Developing a new non-obvious technology would be a good start.
- rchaud 8y agoAnything pitched as 'tech' that doesn't look or smell like 'tech' is basically the founders' way of saying 'we need a lot of money because we lose millions each year and are nowhere close to making a profit.'
- CaptainZapp 8y agoWell, maybe they should add Blockchain to the company name.
- ksec 8y agoWell, most of the Dot Com bubble companies had literally no revenue. So I think we might see a scale down in these type of valuation, but in terms of revenue generation and Technology penetration we are no where near the absurd Dot Com bubble era.