Be careful. We are likely nearing the end of the recent boom in innovation, and tech investors are overreaching, says Silicon Valley investor and entrepreneur Elad Gil.
Gil, who’s spent years in key posts at Twitter and Google, and who’s currently invested in or advising private companies including AirBnB, Square, and Stripe, argues that as they search for the next technology wave, investors have begun to apply lofty software-company-level valuations to industries that are traditionally less profitable and more asset-intensive, and that also have vastly different business cycles and distribution.
