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Did The Tech Bubble Just Quietly Pop?
While some might scoff at the idea of there even being a bubble in hi-tech start-ups, it appears the massive wall of money that has been thrown at dot-com 2.0 names - all money-losing, social, mobile, cloud name-droppers - has dried up. As The TechCrunch Bubble Index shows, the last 90 days have seen startup-funding announcements collapse over 40% to their lowest level in almost 3 years...
Todd Schneider explains what The TechCrunch Bubble Index is...
The TCBI measures the number of headlines on TechCrunch over the past 90 days that specifically relate to startups raising money. I defined a "startup fundraise" as one where the amount raised was at least $100,000 and less than $150 million. A higher TCBI means more TechCrunch stories about startups raising money, which might broadly indicate a vibrant fundraising environment. For example, a TCBI of 209 on November 16, 2014, means that there were 209 TechCrunch headlines about startup fundraises between August 19 and November 5, or 2.3 per day.
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So wait, did the funding bubble burst in the spring of 2014?
In the spring of 2014, investors pumped more than $5 billion into startups (as reported on TechCrunch) over a 90 day period. More recently, in the fall of 2014, that number has declined by almost 40%, to just over $3 bn. The earlier TCBI graph showed a similar decline, from a high of 346 in April 2014 to a value of 209 as I write this. In fact, the TCBI is now at its lowest value since June 2012, and the percentage of all TechCrunch articles that are about startups raising money has declined from 9% to 7% in 2014 alone.
It's also possible that it is simply getting harder to raise money!
I bucketed each fundraise article based on the amount raised to see if there are any trends within investment rounds (seed, series A, etc.):
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They should give the BOJ a call. I here they are in the market for investments.
No more than Bill Cosby's accusers. Stay quiet for a while then all hell breaks loose.
Die AAPL die!
I'm guessing that once nation-states have died off, the NWO will consider Apple to be a sovereign entity, given their cash on hand, and special relationship with the intelligence agencies that run the show.
Bubble? What bubble? Yellen just farted.
https://www.youtube.com/watch?v=kx15xhtvzz4
The "cloud" is just an excuse to monetize other peoples data. Social media is just entertainment for retards.
Mobile is legitimate, but its much more of a niche than people think.
Must be going to the moon!
Regards,
Cooter
That's brilliant. We can sell CBS - cloud backed securities.
You get noffin for noffin.
We don't have anything against cloud technology per-se. But when "they" talk about "the cloud" they are talking about an Amazon (CIA) and Google (CIA) dominated cloud. This would be the NSA's wet dream, where nobody has any control over their hardware and services can be shutdown at will.
Like all shepherds, aggregators of value have their own reasons for building corrals outside of the desires of the sheep.
You forgot Fartbook (CIA)
"The "cloud" is just an excuse to monetize other peoples data."
Eh, not really. It allows on-demand computing and dynamic scaling, which lowers overall infrastructure costs. Unless you are talking about cloud computing as remote drive space, which has been around since the mid-nineties.
For a while I've been running my own "clouds" for personal need. Remote file storage, chat, e-mail, VOIP phone. There are tools available for everything. Instead of connecting to a service provider you link up to your own server sitting at home and that thing broadcasts data. Takes a bit of effort to configure, but it's doable.
What the software manufacturers are doing nowdays is forcing people into data clouds via licensing, with no opt out options. Adobe is a good example. Their software used to be tied to machines. Now the license travels with the user. Programs that should be able to function offline now require online connectivity for constant verification.
Everything is becoming a paid subscription service. The idea of access privileges replacing real ownership that swept the material world is now being applied to personal data.
Nothing real gets built. All those internet companies are is simply a room full of servers, manufacturing digital products of zeroes and ones. Everything you can hold in your hand is made overseas, aside from the one thing you have left, meaning we are all just here in the USA "holding our own".
internet companies are is simply a room full of servers, manufacturing digital products of zeroes and ones. Everything you can hold in your hand is made overseas, aside from the one thing you have left, meaning we are all just here in the USA "holding our own".
No, no. If you have access to a room full of servers, you don't HAVE to hold it in your hand! (Dummy.)
all perfectly normal trading activity...
http://www.kitco.com/charts/livegold.html
http://www.kitco.com/charts/livesilver.html
why would ANYONE take REAL risk and invest in a start up?
much more profitable to just buy stock and watch double digit annual returns
(dead serious ... multi faceted the ways central banks are destroying economies)
That's it. The top of the food chain, for the most part, cannot create wealth (faster than destroying it). Uncle Warren included.
The Fed needs to implement NIRP immeadiately so these much deserving companies can get funding.
Instachat, TWTR, FB, MySpace where would we be without these companies?
The 50 million soon to be Americans need these leading techologies to stay in touch with their families not to mention eaiser and cheaper ways to sent them monies.
FaceFuck and Twatter are the way forward trading hard luck stories in the healing process.
waiting for LOOKATME!!!.com IPO, then the top will be in
Caught a headline on CNBC saying 'thanksgiving is a week early, as 'investors' prostrate themselves and lick the feet of the Fed central banksters in thanks'.....almost puked.
I have a friend who is high up on the food chain at Greylock Partners (one of the gorillas in Silicon Valley VC). Saw him a few weeks ago and he admitted that tech is very much in a bubble.
Thought it was telling, as I remember a conversation from a year or so ago when I told him it was a bubble and he vigorously defended it.
At some point they will have to crash the market to create a dip to buy.
Could probably predict it if you know percent of market held by retail + chinese + arabs - the three stooges.
No it didn't.
In the immortal words of Scooby-Doo: "Ruh roh!"
But seriously, isn't this more evidence of what some have been saying about those that are "connected," and "in the know," getting out of dodge?
An American, not US subject.
Madame Yellen, "I have not yet begun to blow!"
What is considered 'tech' in these numbers?
Is solar 'tech' in this? If so - yawn...
Am glad this is happening its well overdue the virtual economy is finally coming down