If you're an early stage venture capitalist or angel investor there is no time like the present to declare a bubble, say valuations are out of control and predict the demise of the tech industry in the very near future. Since they're in the business of buying low and selling high, any angle that suggests that the buy price should be even lower sounds great to them. If there's any evidence of said bubble all the press will eat it up. Mostly because they were out buying Internet stocks in 2000 instead of doing their jobs and reporting on the fairly obvious signals that the Nasdaq was about to implode. They won't get caught with their pants down and their hand out again. Declare a bubble early and declare it often. And there is some evidence laying around. Valuations on a few select private tech startups are pretty darn high right now. And valuations on early stage "Series A" startups have surpassed the all important $4 million line and are now averaging in the $6 million - $8 million range. That's bad for seed fund economics. Which leads to paragraph 1 above, followed by paragraph 2 in the press.
Source: http://feedproxy.google.com/~r/Techcrunch/~3/ZSiiibkEO7k/
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