December 30, 2006
The WSJ published a good email debate between my friends Todd Dagres and David Hornik on the question whether there is Web 2.0 bubble right now. Check it out here.
My own take, briefly stated, is YES, there is a bubble, in that there is alot of money going after mediocre deals in the “Web 2.0” sector, with the result that deals are getting done at silly valuations and increasingly with little real diligence and serious thinking.
But, that said, I ultimately come down agreeing with Hornik: regardless of the fact that a bunch of silly deals will get done, the Internet and its increasingly central role in all aspects of media offers one of the more exciting and rewarding opportunities for discerning venture investors.