Gary is spot on. I am sorry to say we are seeing history repeating itself with bad business plans buoyed up on venture capital and fickle advertising revenue.

This is something I have written about for a long time and the longer that passes the more worried I become. You may argue that I have been banging on about it for so long that surely it proves my fears will never happen. Possibly, but with the state of the global economy I wouldn’t want to be working in the Valley right now.

  • Anonymous

    When you say the valley do you think this problem is only centric to the US?

  • ‘Conservatives return to wreck the few bits of the country they missed last time’. As much as I hate to talk politics…have we forgotten Labour?

  • I’m not gonna get involved in the political part of this post, but I will support you in your fears for sure.  When footballers earn £200k a week (a week!!!), and Groupon is worth $5 Billion – something is gonna hit the fan sooner or later.  Where is the underlying commercial structure to support it all? There ain’t one!

  • The problem with companies like Groupon is really that they are being heavily invested in with the sole aim to try and inflate value and then float them on them stockmarket to make a profit. It’s all artificial inflation with little substance, all with the aim to create wealth out of thin air. It’s a dangerous boom and bust cycle.