Is there a new tech startup bubble that’s going to pop soon? While the verdict may still be out as to whether or not the Facebook IPO was way overvalued, shares are still trading at about 31% less than their initial value. Is there still time for investors to see the huge ROI they’ve been counting on with similar tech superstars, or is the money about to dry up?
The infographic below (from the good people at Biz Brain) charts the market value of dot.com technology from 1994-2002, showing the rise in tech stock speculation that ultimately proved unsustainable. While not going so far as to say that the same pattern is repeating itself, the difference between what a few notable startups (Instagram, Zynga, etc.) have earned and their perceived value is rather alarming. Is the Dot.com Bubble 2.0 about to pop?
Can we expect the 5% of startups that actually meet their projected revenue growth to carry all the underachievers? Startup ecosystems are really just beginning to flourish all over the map, so a lot is riding on figuring out if the numbers make sense – if the dollars will keep pouring in or if the funding faucet will shut off? Take a look:
Infographic courtesy of Biz Brain
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