Possibly. I mean in theory, correct me if I'm wrong since I haven't read any books on this type of stuff, VC investments always have a bubble like structure att

Possibly. I mean in theory, correct me if I'm wrong since I haven't read any books on this type of stuff, VC investments always have a bubble like structure attached to it. Every VCs nowadays want to find their Google or Facebook, so more and more LP's are investing into VC funds so all of them can get a piece of the social network / internet hype. If the VC firm's name is not Sequoia or Kleiner Perkins, or any well known firm name, it is probably not going to attract a lot of top tier entrepreneurs, but since they've already raised a fund, they got to invest somewhere. In a way it's good for entrepreneurs, since there's a lot of available cash, but at the same time a lot of entrepreneurs are getting money for the "same ideas". So let's say 100 secret deals are made this month on new social networking sites. After a period of time, only one company will achieve high success, 4-5 are surviving and resilient, and the rests are gone. All this stuff is theory, but I'm sure if someone really digged into this, it can show that there's a lot of flaws with the VC industry. But one thing keeps it going, which is winning. I mean once you start to win like Sequoia and KP, life is good. So I believe if there's competition, there's what people like to refer to as a bubble. Since not everyone can be a winner, there are always a lot of losers. I doubt there is going to be another dot com bubble burst, that just happened to be a crap load of bad investments faltering at once. In essence there's no that much theoretical difference between dot com bubble and the great depression. It will just happen again and again because of Gordon Gekko's favorite phrase " Greed is Good"