Partying Like Its 1999

Numair starts off this interesting post on Sean Parker with the following line:

First, let us settle the matter once and for all - the unthinkable has happened, and we are in the midst of a second dotcom boom.

But as Howard points out in this post:

This market is so NOT 1999.

I think both statements are true. We are in the midst of a second dotcom boom. But it hasn't entered the consciousness of the "man on the street".

But it sure has entered the consciousness of many entrepreneurs. They can't think about anything else but starting companies and making a killing.

And it certainly has entered the consciousness of media executives who are falling all over each other trying to throw money at high flying startups before their competitors do.

And the latest fad is raising wads of cash to roll up internet media properties. I know of at least five groups that are doing it right now.

Watching this whole thing is making me grumpy.

I need to take a day off and spend it in the real world, like Lindsay did in today's Wallstrip.

Comments

[howard lindzon]

Good points and a good remix. Pockets of silliness inside a stock maket that could care less about stocks.

The deal is the "New New "thing again

The outcome will be a new wave of insider trading scandals before it is over.

Thats the new bubble - greed from the wealthy again

[Jason Devitt]

It's not like 1999; the foundations are a lot more solid. But people still have unrealistic expectations. I wrote about this too today.

http://www.brash.com/brash_dot_com/2006/11/the_future_of_b.html

[Hank Williams]

To me, this is an "inside the beltway" bubble. Its meaningless to the general population and the economy as a whole. Yes, a lot of venture companies will loose money, and a lot of entrepreneurial ideas will fail when/if the venture market corrects. But the only reason the last bubble was at all meaningful is that the *public* markets took lots of money from unsuspecting people and poured it into companies like webvan, etc. Investing public money in such companies was criminal. So perhaps we should call the current situation a "venture bubble" so as to place it properly in the current economic constellation. In other words, whats happening now is no big deal, err.. except maybe for you as a VC :).

[Roger]

Frothy, yes, but NOT a bubble. A post I had written following Web 2.0:
http://www.informationarbitrage.com/2006/11/web_20_whatever.html

[Dan]

Hi Fred,

I love your site, particularly the new tools and widgets you expose us to. I always check them out...

Quick question, a little personal so please just E-mail me back... How many daily visits do you get and with all of the advertisement you have on your site, what kind of money do you receive? Monthly, annually, whatever.

I have had blogs since 1999 but have never went the advertising route because I figured that it wasn't worth my time but I'm not so sure any more...

Thanks! Dan

[Dan Cornish]

Hi Fred,

I do think it is a bubble. I am a survivor of the first bubble. $1 Billion was invested in my verticle industry (architecture, engineering and construction) the first time around. We are one of a few that survived. Yesterday I saw a site in my industry being funded for around $5 million for an A round.

When I saw this, my jaw dropped and said to everyone, "it's Back!" I saw maybe 10-12 similar sites back in the day being funded like this and none of them are still around. It certainly looks like a duck and it is quacking like a duck.

[kip]

Howard is right on the money. Good companies that should be going public will be aquired prior to shopping a deal. Its like good people that you want to work for your firm are never on any job boards but they have jobs because other people realize their value befoer they fully come to market.

Also, Lindsay did a great job yesterday. That is some classic stuff. More on the street reporting from WallStrip please.

[ashkan karbasfrooshan]

Hmm... How can I put this:

Despite the fact that I mention Del.ico.us as an example AND talk about VCs in general, I'm not necessarily talking about you Fred... but rather, VCs at large and the impatience many seem to demonstrate:

http://www.watchmojo.com/web/blog/?p=893

Enjoy

[charlie crystle]

I'm partying like it's 1989.

http://www.clemsnide.org/lyrics-yfm.html

[Dustin]

Well if we are doing it all over again, maybe we can get it right this time.