Monday, June 06, 2011
New IPO Bubble Building.
What is it about the world of finance that keeps us building "bubbles"? We had Internet Bubble 1.0 in 1999 and that bubble burst in 2000, we had a much large bubble build in the mortgage business and we just recently started to recover from that bubble bursting, now we see Internet Bubble 2.0 building. I wonder if we've learned anything from all the bubble bursting in the last decade?!
Internet Bubble 2.0 is gathering steam since the successful IPO of LinkedIn last month and now Internet startups are lining up to be the next company to board the IPO gravy train. Groupon has now filed an S1 to announce their intent to go public and I would imagine that Twitter and Facebook will follow shortly.
If this is a real bubble you will start seeing lots of money flowing back into Venture Capital and start-ups across the country getting new investment. If there are any lessons to be learned from all of these bubbles it is "get in quick and be one of the first" who knows how long the bubble will last so you need to act quickly to take advantage.
This will be fun to watch.
Update: Here is a contrary view
Just my 15%