Flickr photo via Justin D. Miller

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?

John Cook is co-founder of GeekWire. Follow on Twitter: @geekwirenews and Facebook.

Comments

  • http://x.co/ULT2 MyAdCenter.com on sale at SEDO


    yes, but, this time, it shouldn’t explode

  • http://www.hasoffers.com Peter Hamilton

    so funny, I have been having this discussion with several people recently. The talent shortage and crazy valuations certainly doesn’t bode well.

  • Guest

    Yes. The second boom started with Google’s IPO in 2004. The second bubble started with Twitter and Facebook being considered titans of industry, where “industry” means “posting pithy statements on the web.”

    Read “The Snowball” about Warren Buffett. It details a prophetic speech Buffett gave at Sun Valley in 1999 saying that the rules of value investing haven’t changed. Buffett was labeled an old fuddy-duddy for sitting out the ’90s tech bubble, but his company is stronger now than ever. Investing right now in a company like Groupon, LivingSocial, Facebook, or Twitter is a desperation move to appear “hip” at best, and suicide at worst.

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