
Why journalists can’t stop asking the tech bubble question - prostoalex
http://fortune.com/2015/09/26/tech-bubble-question/
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greenyoda
Vinod Khosla is quoted as saying: "This is a question only writers like. Who
cares whether [startups are] overvalued or not?"

Lots of people care:

\- Potential startup employees who need to evaluate a compensation package
that contains equity.

\- Investors in venture capital funds.

\- People who are thinking of buying stock in these companies if they ever
IPO.

\- Larger companies who are considering acquiring a startup.

If someone is trying to pretend that the valuations of startup companies is an
irrelevant question and that journalists should stop investigating the
phenomenon, I'd suspect they're trying to hide something.

Assuming that the price of something can only go in one direction (up) has
repeatedly caused a lot of pain to people and to the economy over the years
(the last and biggest example of this was the housing bubble). And having been
an investor during the 1999 internet bubble, I can definitely see similarities
between then and now. I don't know whether we're in a bubble now, but it's not
impossible.

~~~
zzalpha
Don't forget larger traditional investors that are getting involved in private
funding rounds as they chase returns. This could easily ripple out to
mainstreet.

