Is the Bubble Back?

Marc Goldberg wonders, “Is the bubble back?” While it is always difficult to discern the size of a storm from the inside, we should consider a few questions:

Are venture deal median prices increasing? Yes.

Are the newspapers filled with stories about Silicon Valley entrepreneurs looking to get even richer? Yes.

Have we seen recent high-profile triple-digit acquisitions? Yes.

Are internet companies’ stock prices rivaling “traditional” media companies’? Yes.


Has the Nasdaq gone through the roof in the past few months? No.

Is there so much hysteria that MBAs are leaving their cushy consulting jobs in droves to start companies? No.

Have we lost a sense of grounding that we’re proposing new valuation metrics? No.

Is everyone partying like it’s 1999? Not yet.

No, I would argue that the bubble isn’t back just yet, though Jeff Bussgang wonders if it is coming. Yes, I agree that there is a lot of excitement in the air, but that doesn’t necessarily mean that we are in or are entering a bubble.

I am not saying that there aren’t investments currently being made with unrealistic expectations. Nor am I saying that companies are being funded at extremely lofty prices. Nor am I saying that there are companies being funded that won’t survive. It’s all part of the business.

What we’re in is a rejuvenation. After a cold winter, the internet is back. And in comparison to a couple years ago, things feel great. Heidi Roizen announces this fact in none other than a podcast. It’s indeed a new era, but not a bubble – yet.

David Beisel

David Beisel is a co-founder and Partner at NextView Ventures. He has been focused on early stage Internet startups his entire career, both as an entrepreneur and venture capitalist. As an investor in the digital media space, David was most recently a Vice President at Venrock and previously a Principal at Masthead Venture Partners. Prior to becoming a venture capitalist, David co-founded Sombasa Media, an e-mail marketing company best known for its flagship product BargainDog. Sombasa was successfully acquired by About.com where David served as Vice President of Marketing. David holds an MBA from the Stanford Graduate School of Business and an AB in Economics, magna cum laude and Phi Beta Kappa, from Duke University. He also founded and leads the Boston Innovators Group, an organization which holds quarterly entrepreneur events drawing a thousand attendees.

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