One of the surest signs of a bubble is when you start to hear the phrase, “This time it’s different.” That’s my cue to clap my hand over my wallet and head for the nearest exit. That same mentality is starting to bubble up around seed stage valuations. Investors are justifying those higher valuations with comments like “social media and viral loops make marketing more effective” or “If things don’t work out, we can sell to Google as a talent acquisition.”
It all comes down to the fact that all the previous norms of seed stage investing have gone out the window. The problem is that this shift partially ignores two important factors: History and economics. Here’s why valuations still matter.
To read the full, original article click on this link: Why Valuations Are Getting Too High for Seed Stage Investors
Author: Chris Yeh
