Sxsw New Rules for the New Bubble 031211. Debates: Tech bubble: Statements. Today’s valuations: Is it 1999 all over again? (Editor’s note: Megan Jones is an investment banker and former Director at Hadley Partners.
This story originally appeared on her blog.) Zynga is reported to be raising $500 million at a $10 billion valuation. VC True Ventures co-founder: There is no bubble, period. Connect with leaders from the companies in this story, in real life: Come to the fourth annual VentureBeat Mobile Summit April 14-15 in Sausalito, Calif.
Request an invitation. There is no bubble forming around Silicon Valley or tech startups because white-hot companies like Twitter and Facebook are able to show they have fundamental value and are capable of making money, Phil Black, co-founder at early stage venture capital outfit True Ventures told me today. “There is no bubble at current moment. There are very successful Internet businesses being created that are growing very rapidly and are making a lot of pretax profit,” said Black. The biggest red flag VCs need to worry about is when valuations seem out of whack with what investors understand about what the company actually does, he said.