It isn't always easy to define the line between investing for real innovation and growth, and rushing into what seems like a gold mine only to have it collapse around one's ears. It's part of the lure, risk and pain of venture investing, yet, after all the venture capital industry has been through, one would think the distinction would be a bit clearer now.
If you ask some prominent venture capitalists who have experienced the highs and lows, however, trouble is once again brewing. Not necessarily on the scale it was 10 years ago, but some are noticing flashing warning signs.
Fred Wilson, who saw his share of successes and failures with Flatiron Partners during the boom and went on to co-found New York firm Union Square Ventures in 2003, is concerned. In his well-read blog, he wrote recently that "competition for 'hot' deals is making people crazy and I am seeing many more unnatural acts from investors.
To read the full, original article click on this link: Forever blowing bubbles (The Deal Magazine)
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