Predicting The Next Bubble
Are internet companies doomed for another bubble burst? Everyday techcrunch.com lists another startup funded by venture capitalists in an effort to be the next Facebook, and after witnessing the over zealous investors pick up shares of LinkedIn there seems to be investment in just about every new idea, Law of Averages?. Theres a race to get into the venture capital game to fund these companies in hopes that they will succeed. Are the values that investors place on these service sector companies realistic? I don’t think they will be wildly successful. Could the pursuit of service sector technologies be the result of our education system, which has not encouraged students to study the sciences? There are too many startups whose cash flow models rely on a critical mass of society adopting the service. The baby boomers will probably not adopt the new innovations en masse; however new generations will adopt and embrace the change. Unfortunately the younger generations do not yet have disposable income or purchasing power to support many of the new companies. The bubble will burst, but the benefits will be a new breed of tools that will improve the efficiency of our society, and by improving the efficiency we will be able to pursue greater technological and self-fulfilling goals. The burst will leave in its wake a new form of the internet which will be dynamic and stream data. Pop!