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
4. Order of Battle
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.