
The "Tourist" Investors Flooding Silicon Valley With Money Will Go Home One Day - robk
http://www.buzzfeed.com/williamalden/why-startups-should-be-wary-of-tourist-investors
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tonydiv
While the big "tourists," eg Fidelity, are investing, they aren't investing in
the early stage froth. That's not to say Uber & co's valuations haven't been
high, but I've found most investors to be here. Many of them have been here
for quite some time too.

This article is a whole lot of speculation without much substance. What I'm
most curious about is LP's effect on VC fund distribution. The big funds are
still raising big funds, General Catalyst as an example this week. They still
need to allocate that capital.

To answer my own question : I guess they'll be allocating it to the highest
growth / most safe opportunities though. And at better valuations.

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w1ntermute
> The big funds are still raising big funds, General Catalyst as an example
> this week. They still need to allocate that capital.

After the dotcom bust, there were many cases where VC funds just returned
uninvested money to LPs, as it was evident that the IPO market had dried up.

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regeland
The search for yield... a predicted consequence of 7 years of zero percent
interest rates. Last time around it was investors seeking yields in low-
quality mortgages. This time, they're investing in low-quality Silicon Valley
startups.
[https://en.wikipedia.org/wiki/Austrian_business_cycle_theory](https://en.wikipedia.org/wiki/Austrian_business_cycle_theory)

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arbuge
That would be somewhat ironic - startups have no profits for the most part,
let alone dividends.

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S4M
But they have growth...

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Inthenameofmine
Considering that central banks are creating a new norm of negative rates
around the world, I doubt that foreign investors who are there to seek yields
will go away anytime soon.

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jbpetersen
Seems like that would simply cause deflation in equal measure once people
catch on.

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hackaflocka
Wait... El-Erian said "re-up".

When did this urban/inner-city drug culture term become mainstream?

(for the etymology geeks here, El-Erian means "of the aryans", no not the nazi
aryans, the original aryans)

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DevX101
The Wire

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ghaff
I actually wasn't aware of it being either street slang or associated with The
Wire. It seemed a pretty familiar term to me. A few different online sources
suggest it started out as military slang to mean "re-enlist."

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greenyoda
And the military usage goes back to the early 1900s:

[http://dictionary.reference.com/browse/re-
up](http://dictionary.reference.com/browse/re-up)

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themark
Clickbait article about an article about impending doom.

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kevin_thibedeau
I stopped after the first sentence starting with a conjunction.

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pfarnsworth
Of course it will. Investment will ebb and flow in cycles, just like it always
has. Back in 2001 was a massive pullback in VC investment, and we very well
may see something similar if there's a catastrophic downturn in the tech
economy.

But it will always come back. There is no place like Silicon Valley because of
the critical mass of talent and greed. There are far too many greedy people
who want to make money that will always bring in the money.

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NoPiece
If you think SV is greedy, go work in New York at an investment bank for a
couple years. SV is full of naive do-gooders.

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bunkydoo
Loldidn'tread

