flâneur

What to do if a bubble is starting - Sam Altman

blog.samaltman.com · 474 words · saved by 1 readers

Maybe now we’re actually in the early stages of a startup bubble. Valuations are trending up again. And no one is talking about a bubble anymore, so it could be happening. Many companies still feel reasonably priced. Yes, Facebook is up 70% in the last six months, but I think it’s likely still undervalued. Lots of companies raising B rounds are doing it with large profits and at reasonable multiples. But the very early stage feels somewhat out of whack. Companies raising money at $15MM+ plus valuations with no traction and no real vision beyond starting a startup still strikes me as unsustainable (not to mention bad for the companies). Lots of other signs point to a bubble—founders of Series A stage companies being angel investors, a significant uptick in the number of parties, soaring rents, soaring salaries, lots of new investors coming to valley, and MBAs starting companies as the fashionable thing to do again. Even if this is the beginning of a bubble, it will likely go on for

Maybe now we’re actually in the early stages of a startup bubble. Valuations are trending up again. And no one is talking about a bubble anymore, so it could be happening. Many companies still feel reasonably priced. Yes, Facebook is up 70% in the last six months, but I think it’s likely still undervalued. Lots of companies raising B rounds are doing it with large profits and at reasonable multiples. But the very early stage feels somewhat out of whack. Companies raising money at $15MM+ plus valuations with no traction and no real vision beyond starting a startup still strikes me as unsustaina

related reading