3 ms·
But we aren't seeing anywhere near the same number of tech IPOs today as we were in 1998-2000. As I understand it, the "bubble" came from companies too easily s
by thenmar 12y ago
But we aren't seeing anywhere near the same number of tech IPOs today as we were in 1998-2000. As I understand it, the "bubble" came from companies too easily selling their shares to ignorant, every day consumers who assumed "internet" meant the company would be huge. The only people investing in the companies you think are overvalued are VC firms with huge amounts of capital.
Now, are these VCs providing the same amount of capital that the IPOs of 1998-2000 were? Hopefully someone with more insight can comment on this, but intuitively it seems to me that the burst couldn't possibly be as bad, since there's just less easily available money to suddenly dry up.
- ulfw 12y agoVery true. The IPO market has almost dried up (at least compared to back then). But the M&A market has almost replaced that. See Facebook's $19,000,000,000 acquisition of Whatsapp. It's a little like the housing bubble. As long as I find someone who'd pay me even more than I bought something for, everything goes well and dandy and no one asks about the real value of a product/house/company.