Ehhh. Traction is a necessary, but insufficient condition for getting a series A. There's a "hotness" component here that's contributing to the overreaction. Y

Ehhh. Traction is a necessary, but insufficient condition for getting a series A. There's a "hotness" component here that's contributing to the overreaction. You can't explain things like (for example) Meerkat raising a big round and cratering the very next week without considering the importance of hype. Meerkat and Color and Secret are walking out the door with big checks while lots of other entrepreneurs with great metrics are waiting for their fifteenth meeting...because they're not in the tech gossip rags. Say what they will in public, I'll bet you that Meerkat's investors are wishing they'd sat on that term sheet for a couple of days.