Webreakstuff blog

Shaking off some of the “Kool”

Steve Rubel posted a really good article on how everyone appears to be drunk on 2.0 Kool Aid. Crazy valuations, unexciting opinions, a diluted market. Steve has a point – everyone’s high on everything that’s happening, but that may or may not be wrong. Granted, there’s companies throwing absurd amounts of money around to get into something they don’t necessarily understand. There’s also a growing amount of VC deals going in reverse (VCs approaching startups instead of the other way around). A lot of startups have played the me-too game for a quick buck.

Part of what’s happening now is overly hyped. New technologies are super exciting, but that doesn’t mean everything on the market today is too. The key ideas these days are those about changing lives and building a platform for more innovation – pretty much what was exciting 7 or 14 years ago. They’re just engulfed in bad products with poor execution (which doesn’t stop them from getting funded, these days).

I would say everyone should get a little bit of Steve’s opinion as well as Fred Wilson‘s – that is, to be cautious about the Kool Aid, but to be excited about some of the new opportunities that being built every day. It’s not all bad – it’s just that most of the time people assume that a lot of stuff out there is actually good when it’s not.

Update: Richard over at Read/WriteWeb just posted his own opinion as well.

Update 2: New York Magazine has a great story about whether or not we’re living, breathing and working in a bubble that you should read if you care about this stuff. It features a quote by Michael Moritz that pretty much sums what I’ve been thinking (and writing occasionally on this blog):

The great news for me about these times of enthusiasm is that inevitably there’s a lot of bedlam, undoubtedly there’ll be carnage, there’ll be all sorts of carcasses strewn across the road. But there will also be a handful of companies that will emerge to become very significant. And that’s what working and living and investing in Silicon Valley has always been about.

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  2. Matt Robin says: November 4, 20076:59 pm

    I’m going to make reference to the recent article on my site – called: ‘Dot Com Crash 2.0′…and suggest it links in quite well with the article here. Yep.

  3. Antonio Rosado says: November 7, 20074:35 pm

    Shit, that’s a great article on New York Magazine. Thank you for this post. It really captures the spirit between east and west coast thought on the web.

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