A New Venture Bubble

Ann Grimes has a piece in Wednesday’s WSJ arguing that there is a new venture capital bubble growing. She points to the return of angels, high net worth sorts, smaller state pension funds, and foreign capital — dumb money, in other words — as all being signs that we are approaching a blow-off top in venture funding.

I’m torn. While I see signs of an over-heated environment — people are again taking meeting with dubious companies because they heard someone else already met with said dubious company — I just don’t accept that we’re all the way back into bubble-land.

As I said in another post recently, one of the consequences of a healthy funding environment is that some companies that shouldn’t get funded will get funded. It is when nearly everything is getting funded that Ann should come back and write about impending bubbles.

Related posts:

  1. Khosla & the Nanotechnology Bubble
  2. Venture syndicates
  3. Venture data is lossy
  4. Venture Investing: Riding the Ups and Downs
  5. Flexibility in Venture Capital