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by Pengtuzi 4245 days ago
An honest question: Are we heading towards a new dot-com bubble? I feel like a lot of companies have been bought/sold for ridiculous amounts, e.g. Mojang, as well as these crazy investments devoid of critique. I'm far from a biz man but it makes me a bit worried. Should I be worried?
2 comments

According to Mark Cuban(who I'm pretty damn sure knows what he is talking about), it isn't remotely a bubble, because in the dot com bubble everyone was investing - regular working people quit their jobs to become day traders, you would hear people at the coffee shop talking about the prices of stocks they bought, etc. Then when the bubble burst those who hadn't got out while they could lost everything and more. Now its VCs that are throwing money at everything, and they've got more than they know what to do with, and will be just fine if companies they invest in fail.
One of the biggest signs of the bubble were the lack of sanity on exits and IPOs for unproven businesses and technologies.

In this case there is certainly (some) irrational exuberance for funding, but unless you start seeing lots of minimal revenue IPOs it's not the same animal.

In short - lots of startups may die, but it's probably more things that wouldn't have otherwise been funded. It's unlikely to crash the stock market again at current rates.