

Venture Capitalist Sounds Alarm on Startup Investing - jhonovich
http://online.wsj.com/articles/venture-capitalist-sounds-alarm-on-silicon-valley-risk-1410740054

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jhonovich
Interesting anecdote:

"For the first time since '99, in the past 12 months, I've been in board
meetings where the company says, "Our only option is a 10-year lease," at
record pricing on a per square foot basis here in San Francisco, which is two
or three times what the rent was three years ago. And so this is why it's all
cyclical—because the landlords get greedy.

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mgav
Another excerpt: "Excessive amounts of capital lead to a lower average fitness
because fitness, from a business standpoint, has to be cash-flow profitability
or the ability to generate cash flow. That's the essence of equity value. And
so I think we get further and further away from that in the headiest of
times."

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xavierJohnson
The fact I need to sign up to read this article is stupid. Why is it on HN?

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kevinwang
Anyone have a mirror? Looks like an interesting article.

Edit: actually, I found one:
[http://online.wsj.com/news/article_email/venture-
capitalist-...](http://online.wsj.com/news/article_email/venture-capitalist-
sounds-alarm-on-silicon-valley-risk-1410740054-lMyQjAxMTA0MDEwNTExNDUyWj)

