We’re now in the second Internet bubble. The signals are loud and clear: seed and late stage valuations are getting frothy and wacky; hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble and investors are starting to openly wonder how this one will end.
The bubble is being driven by market forces on a scale never seen in the history of commerce. For the first time, startups can today think about a Total Available Market in the billions of users (smart phones, tablets, PC’s, etc.) and aim for hundreds of millions of customers. And those customers may be using their devices/apps continuously. The revenue, profits and speed of scale of the winning companies can be breathtaking.
Rules for building a company in 2011 are different than they were in 2008 or 1998. Startup exits in the next three years will include IPO’s as well as acquisitions. And unlike the last bubble, this bubble’s first wave of IPO’s will be companies showing “real” revenue, profits and customers in massive numbers. (Think Facebook, Zynga, Twitter, LinkedIn, Groupon, etc.)
To read the full, original article click on this link: New rules for the new internet bubble | VentureBeat
Author:Steve Blank
