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Something about the availability of money for entrepreneurs feels like a bubble, but I suspect that it is not. I've been on both the receiving side and investi
by billboebel 16y ago
Something about the availability of money for entrepreneurs feels like a bubble, but I suspect that it is not. I've been on both the receiving side and investing side since 1999 and the pace of change in terms of increased availability of money from angels is just weird. I suspect it is not a bubble though and rather it is the early stage of complete disruption of power in the investing community. And of course disruption = opportunity, so as angels we should be investing more right now, not less.
- SkyMarshal 16y agoThere's something of a bubble still to it. Low interest rates + continued quantitative easing = more cash and credit in the system. But if we get the wave of mortgage, debt, and business defaults that the Fed and Treasury are trying to prevent, that angel cash bubble may feel the pinch too. They're still fighting it.
- trotsky 16y agoI suspect it is not a bubble though and rather it is the early stage of complete disruption of power in the investing community. The thing is, every time there has been a bubble, one of the major arguments always presented is that well, this time it's different so the traditional measures don't apply. In 1999 it was increased worker productivity (due to IT advances) that supposedly supported the outsized P/Es. That turned out to just be a smokescreen, of course. It might even be argued that an excellent indicator of being in a bubble is the existence of arguments about why it's not a bubble even though it looks like one. That means you're at a stage where even the bullish market forces admit that traditional metrics do not support the increased valuations.