I agree wholeheartedly and would point people towards Chris Dixon's article on the topic.[0] Specifically, I think we're witnessing early-stage overinvestment.

I agree wholeheartedly and would point people towards Chris Dixon's article on the topic.[0] Specifically, I think we're witnessing early-stage overinvestment. This has been anecdotally validated by Dixon and Fred Wilson, who state that companies are struggling to follow up blowout seed rounds. "Anecdotes" and all that, but this fits with Neil's idea above (not the one on a Chinese Oppression Bubble, though :P). [0] http://cdixon.org/2012/04/29/is-it-a-tech-bubble/ http://cdixon.org/2012/04/29/is-it-a-tech-bubble/