WSJ Does Some Link Trolling on Web 2.0

The Wall Street Journal is apparently link-trolling via its article Wednesday, “Is Web 2.0 Another Bubble?”. Fine, here you go guys.

So, is the piece any good? It’s fine, but you won’t see anything new here if you’ve read elsewhere on the subject. While a discussion between two VCs — Todd Dagres at Spark and Dave Hornik at August — might sound like a good way to ground the discussion (and Dagres does get off a couple of decent shots), it feels lightweight and data-free. For example, there is lots of discussion about private (and public) companies’ earnings, but no specifics, just arm-waving. Similarly, Dagres extols the virtues of patents and and R&D, and then one-liner-disses the only venture sector — life sciences — where that approach is taken.

A deeper issue, however, is that both Dagres and Hornik are fine guys, but (like yours truly) they’re also both bubble-babies. Dagres’ partnership stint (1995-2004) at his former employer, Battery Ventures, was a one-bubble affair; Hornik entered the venture business (from law) in 2000 just as the dotcom bubble went bust. Neither has multi-bubble experience from which to opine, so it’s hard to take this stuff very seriously.


  1. IBM did it, Microsoft does it, should we surprised when old media flicks an ugly wad of FUD at the wall hoping that it sticks?
    To their credit they did allow Mr. Hornik to present the counter argument but they effected their damage in the headline. There will always be an irrational edge to exuberance, but not all exuberance is irrational. Must I really fend this off with a tired old cliché: nothing ventured, nothing gained? When the corners get worn round on due diligence, head for the hills but until then ignore Chicken Little.
    “Bubble fear” does keep capital righteously sober but many of the imagined productivity gains that drove the tech bubble of the ’90’s have been slowly gaining momentum and realization in the ’00’s.