Why 2011 is not 1999 – By Alap Bharadwaj

Are you nervous about internet valuations yet? If you aren’t, then you might want to consider checking out this fabulous article on dealbook called – Investing like its 1999! The article discusses the possibility of a new tech bubble and is interesting as it highlights both the similarities and differences between the situation in ’99 and ’11. There are some great anecdotes on some of the more notorious failures from the bubble era and these indicate why it might be different this time around. My personal take is that while the fundamentals are a lot stronger this time around, the problem centers around applying the same valuation exuberance that Facebook, GroupOn and Zynga (companies with proven scale in terms of BOTH users and revenues) command to companies that are in their growth phase.

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About Deepak
Venture Capital and M&A advisor, Entrepreneur, Startup enthusiast..

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