Startup Tech Bubble Talk Is Everywhere, But Not All Agree

Is there a tech startup bubble waiting to burst out there? Truth be told, everyone has a different take. Keep using standard good business sense, though, and many experts believe you don’t need to worry. Here are some additional thoughts on the bubble and the possible burst.

Bubble Worries

New tech startup bubble still hotly debated. The purchase of Instagram has fueled discussion anew about whether a startup tech bubble exists and, if so, whether a bursting of that bubble may be imminent. How might this affect online entrepreneurs and small businesses? Reuters

Who knows if it’s true? Not Tim Berry, certainly. Despite his knowledge in the world of software, this entrepreneur is unwilling to commit himself to whether indicators point to a tech bubble ready to burst or whether this is simply the new normal. Business Insider

Taking Stock

An argument for common sense. Is there a reason your small business makes money? Does it help someone, provide a beneficial product, create a valuable service, or do anything else that makes customers willing to part with their hard earned money? BuzzFeed

Make something someone needs. Sound easy? Well, maybe it is, and maybe it’s not. But the theory in the technology economy is that, if you can, you don’t need to worry about being part of the tech startup bubble. Bloomberg Businessweek

Reality Checks

Just keep talking! A good rule of thumb, says Rich Barton, founder of Zillow and Expedia, is that as long as people are talking and worrying about a tech startup bubble, there isn’t one. Huh? TechFlash

The bubble is confined. Super star investor and entrepreneur Mark Cuban says the startup tech bubble is a phenomenon confined to Silicon Valley, where company valuations are out of kilter. When it bursts, Cuban says, it will leave the rest of the country untouched. Wall St. Cheat Sheet

Bad Signs

Acquisition seekers. If there is a tech startup bubble in Silicon Valley, it’s likely to be tied to the practice of creating disruptive technology for no other reason than to get acquired.What’s the motivation behind your tech startup? New York Times

And, if you wanted to get really confused! There’s this post about how we are (but aren’t) in a tech startup bubble that’s ready to burst. The verdict? We’ll see. That’s a true enough assessment, at least! Online Spin

Final Analysis

Tech investment cooling. Whether this news indicates a tech startup bubble or not, investment has slowed for the tech sector in the first quarter of 2012. Is this an argument against a bubble, or is it the impact of ongoing recession? Venture Beat

Tips for survival. If a tech startup bubble is ready to burst, it’s time for smart investors and entrepreneurs to figure out how to survive the worst of it. Don’t worry! This plan will have you adopting better strategies for the long term, no matter what. Forbes

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Joshua Sophy Joshua Sophy is the Editor at Small Business Trends. A professional journalist with 20 years of experience in traditional media and online media, he attended Waynesburg University and is a member of the Society of Professional Journalists. He has held roles of reporter, editor and publisher, having founded his own local newspaper, the Pottsville Free Press.

One Reaction
  1. I don’t think companies like Instagram are going to be snapped up for a billion dollars, starting soon. Does that qualify as a bubble bursting?