Internet Bubbles

There is a lot of talk recently about bubbles in the start up sector.  Companies like Facebook, and Groupon command what seems to be very high valuations.  They got there in a short period of time.  The companies are valued higher or close to than long time Chicago companies like $CME$H$ITW$SHLD$MMI, and many other venerable Chicago firms.

Howard Lindzon runs a venture fund that invests in social media.  Recently he blogged about the recent boom in valuations.  There is no bubble.  (At the University of Chicago, if you follow Eugene Fama you don’t believe in bubbles anyway!  If you follow Richard Thaler, you see room for bubbles)  Howard lists seven reasons why it’s not 1999 all over again. 

Here is the list, click the link to see why
1.  Breathtaking scale
2.  New Exits
3.  Tools 
4.  Order of Battle
5.  Visibility
6.  Wide Adoption
7.  Lessons Learned

We have said it before, it’s never been easier to start a company.  People are proving it, and Hyde Park Angels is funding them.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Advertisements
%d bloggers like this: