Hundreds of millions of dollars of startups will be another technology bubble
February 27, 2017
Abstract startups in the two quarter of this year were up by an increase of $55%, the biggest increase in more than a decade.
Tencent Francisco September 21st, some normal, sane people think, IT industry is currently hot. The reason why they would think so, there are many reasons, one of which is: some Internet Co listed the price valuation, and these companies have spent big price to buy some seemingly insignificant start-ups.
, for example, Facebook listed in May 2012, the valuation of up to $104 billion in February this year, it spent $19 billion acquisition of WhatsApp. Then there is the China Internet Corporation listed on the NYSE last, the valuation of up to $168 billion. (in this case, the real heavy news: YAHOO in 2005 to $1 billion acquisition of 40% of the shares of the Alibaba, really make a great! YAHOO still has a 22.4% stake in the company, is expected to sell some of the Alibaba in IPO.
what is an astronomical figure?. No wonder some people doubt that we may be in another tech bubble, like the one that popped up in 2000. PWC (PricewaterhouseCoopers) released a report last month, but also exacerbated the people’s concerns. The report said that the U.S. venture capitalists are continuing to inject a lot of money into high-tech companies.
in the second quarter of this year, for example, compared with the same quarter last year, the total venture capital in seed stage, early and expansion stage companies grew by 55%, which is obviously since the fourth quarter of 1999 (the first brilliant Internet boom) since the largest quarterly increase.
this raises two questions. First of all, is this a repeat of history? The answer is no, because history never really repeats itself. All booms have certain common characteristics, such as a sudden outbreak of irrational prosperity, easy access to low-cost funds.
but the specific circumstances of each boom are different. For the first time in the Internet bubble as an example, most of the funds are used in the purchase of server, rented office, and trying to market does not exist in or difficult to form (Pets.com and Petopia.com for example) on burn, in order to obtain market share. But in the current boom, people don’t buy servers. Startups in the Amazon elastic computing cloud services (Elastic Compute) rent calculation time, their "office" is often virtual (at least in the early virtual), and they have no money spent on advertising. Therefore, even in the development of twists and turns on the road, they are not too risky.
‘s more interesting question is: is it important for us to be in another bubble?