Michael Arrington: Silicon Valley Could Use A Downturn Right Now

Sure, there's a lot of hype and excitement out there. But to call it a bubble is somewhat misleading. The biggest deals happening right now wouldn't even warrant a sidebar mention in the web 1.0 boom. Niche retail sites were getting $60m rounds, regularly. Companies with huge losses were going public with valuations over $1B.

Now Arrington is calling it a bubble because companies are getting $7m first rounds? Sure, there's a lot of hype and a lot of these companies will go nowhere, but from hype and exuberance grows innovation.

His position makes him an ant under a magnified glass, not surprising that he's getting burned out. But this has less to do with The Silicon Valley than with Mike himself. The increase in startup activity is also making him filthy rich, so I have trouble mustering much sympathy.

His post was pretty thoughtless. I was going to eat fish tonight, but thanks to him I'm having a big juicy burger. I'm gaining weight because he's depressed!

There's some extensive hype here. If you find yourself floating around in the same circles, that hype is being spread and regurgitated to you time and time again. You'd be living in your own personal bubble, shielded from the realities of non-SV people. A lot of this hype gets people excited and allows new things to happen; and those with their head on their shoulders will be able to see past hype and see a successful outcome for themselves.

I agree that it's getting a little "bubbly" around here.

I'm having a really hard time figuring out why any of what Mike said is a bad thing.

Unfortunately, the only true, actionable message one can get from this post is that crying to him on the phone works every time, and I don't think that's the message he wanted to send!

Don't you all think that we are seeing (softly speaking) too many companies whith 100% ad-sponsored business plans? Let's not forget that advertizement market consists of (surprise!) dollars that someone (users, maybe?) need to spend on something real.

And there is only finite percentage of $$$ that Canon (for instance) is willing to share with you for each digital camera sold.

Unless someone shows me digits from reputable source that suggest an unbelievable growth of advertizement market...

Poor Michael Arrington... his life is just so hard right now.

Dear Mr. Michael Arrington,

You were successful only because you were lucky enough to be in the right place at the right time. Try to have some empathy for those of us who can't pay cash for a house in Woodside (~$3 million).

In other words, BITE ME.