RSS at Feed BurnerBubble 2.0?
The last post talked about some Podcasts for Entrepreneurs and Angel/VC investors. David Hornik, who does VentureCast, was featured in an article in the Wall Street Journal on whether or not we are in a Web 2.0 bubble. He faced off against Todd Dagres in the article and the two discussed whether or not we are in Bubble 2.0.
In his recent podcast, David talks about the interview and makes some additional points. I found it to be an interesting article and you can check it out here.
Seeing Web 2.0 companies selling for hundreds of millions and even billions of dollars does have many people wondering whether or not we could be coming close to a bubble. Dagres claims that many Web 2.0 companies are overvalued and feels there is too much Private Equity in the market, which helps inflate the valuations. One reason for claiming these companies are overvalued is because many have high valuations while not even being cash flow positive.
Hornik disagrees and states that there are plenty of Web 2.0 companies that are cash flow positive. He also syays he feels there are a lot of great ideas out there.
Even though they differ on whether or not the markets are overvalued, both agree that what makes markets thrive and the likelihood of success for any company is the quality of the people, and most importantly, the entrepreneur. This is the same thing I alluded to in another post. Great people are more important than great ideas.