Thursday, June 23, 2011

Yes, We are in an Investment Bubble

When the advice smart and experienced people are giving essentially is "raise money now, so you'll be able to make it through the crash and funding draught," we are in an investment bubble.


To anybody who asks my advice I repeat the same line, says investor Mark Suster.  “I don’t know whether this party will last 6 weeks, 6 months or 18 months. But it will end," he says.


And when it does the market will shut off immediately. Those of you who lived through the 2000 bubble will remember that. 


Investors will focus only on protecting existing deals. They will enter the “triage phase” of the market where they figure out which of their existing deals will survive, says Suster. Many good companies will not get funded. New investors hate down rounds. Vultures will start circling looking for deals. "Get funded now, if you can.”


This is a thoughtful post and you really should read all of it:  http://www.businessinsider.com/on-bubbles--and-why-well-be-just-fine-2011-6#ixzz1Q6Hsczhm.


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