Here comes the “B” word again. That’s right, bubble. Venture capitalists and startups are currently engaged in a wild deal making frenzy– highlighted by the dizzying valuations behind companies such as Groupon, Facebook and LivingSocial. Cash-rich corporate tech giants also are on the prowl, looking to gobble up talent and technology before the competition does.
The New York Times took a fascinating look into this new investment activity today in a video piece titled “The Dot Com Boom, Then and Now.”
I met with a Seattle venture capitalist this week who expressed enthusiasm about the tech market, driven in part by the massive amounts of cash that large tech companies like Microsoft, Google, Salesforce.com, EMC and others have on the books.
We’ve seen hints of a bubble around Seattle in recent weeks, including wild stunts to entice workers with free cheeseburgers and cats. The arrival of several large Silicon Valley technology companies in the Seattle area — most coming to attract talent — also may be a warning sign. So, what do you think? Bubble or no bubble?