the entrepreneurship channel

OK, it’s 2010… 2000 + 10 years.  Groupon is supposedly worth $6B (“according to Google”, which passed after figuring that out), Facebook is worth $60B (“according to a new private investor”), and “Twitter”, which has a hazy business model (much like Facebook and Groupon, save copying Google’s ads) is worth $3.5B – according to the venture capitalists. Does anyone think there is a good reason for these companies to be valued as such?  Are we not, in a second “dot com bubble?  If not, then please explain your rationale, and thinking.

There is a reason the public has no enthusiasm for high tech IPO’s…

And guess what… it’s not the $3M per startup pre-IPO overhead from Sarbanes-Oxley (SOX) legislation, as many VC’s seem to feel. That’s actually not a big problem – startups preparing to go public can afford the $3M. It may be an unpleasant hassle, and unfair – but it’s not the reason the tech IPO market has been week. It has much more to do with a little incident ten years ago, which we all remember fondly, called “the dot com bubble (and bust)”.