Build a Business, Don't Focus on Valuation or VC Money

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18 points·efader··6 comments

You can't call bubble by citing companies with billion dollar valuations - there aren't nearly enough of those to signify any sort of trend.

Sorry John you are wrong. Zynga, Twitter, Groupon do you need more? Twitter is a feature masquerading as a business. Groupon is insolvent and Zynga is so reliant on Facebook that it is detrimental to their business.

Three data points isn't much of a trend.

Add in color, MySpace short sale, Zillow IPO, Linkedin IPO, Pandora IPO, Zipcar IPO

Want more?

Almost all these IPOs are backed by solid revenues. And almost in all cases, the companies have been around for 5-10 years - very much unlike the IPOs of the last bubble.

That fact alone makes this very different from late 90s.

So while there may be a bubble "technically", that's not saying much. A better question would be: how bad of a bubble is it? In my opinion, not terribly bad and almost nothing like the last one.

MySpace short sale is evidence of how this is NOT a huge bubble. In a bubble, it would go for billions. Also to date, I don't believe any party has sold myspace for a net loss. News Corp may have sold it in a short sale, but they did so after making hundreds of millions in ad rev from it.

Ycombinator made a mistake to not fund my startup there was another startup that raised 10 million dollars.

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