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Agreed.

I wonder how much of the current froth is based on people trying to be the next Facebook or Instagram?

If Facebook takes off and justifies their early valuation, the startup/angel/incubator/VC world would go into the stratopshere.

If it continues to languish, people are going to be much more skeptical in making investments and even starting web based businesses.

A lot hinges on this stock price for the rest of us....



> If it continues to languish, people are going to be much more skeptical in making investments and even starting web based businesses.

Is the latter part of that really true? Starting a web based business is worlds easier/cheaper than just about any other kind. I see this more as injecting a dose of reality and doing away with the give-things-away-to-get-big-then-monetize-somehow "business plan".


I don't think the possibility of a $50B exit vs a $100B exit will make any difference for most angel investors.


What will make a difference is that neither Instagram or Pinterest would get anywhere near as much of a valuation today as they did a month ago.




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