It's really more about the amount of leverage and the total volume of money at stake. I haven't seen much evidence of either, although that doesn't really mean anything. But let's take Facebook as an example. It really seems like the "valuation" is due to the tiny volumes of shares being traded.
In general it seems like VCs are throwing 10s of millions around fairly recklessly. 10 million is a lot for most of us, but it's nothing in terms of the US economy. If/when it starts turning into billions instead of millions we could see trouble
In general it seems like VCs are throwing 10s of millions around fairly recklessly. 10 million is a lot for most of us, but it's nothing in terms of the US economy. If/when it starts turning into billions instead of millions we could see trouble