theatlantic: Facebook Has Officially Popped the Start-Up Bubble Following Facebook’s IPO we declared a bubble burst and now we’re seeing that hit the start-up ecosystem as investor money becomes harder to find. ”The frothy bubble is over,” an analyst told The Wall Street Journal’s Pui Wing Tam and Amir Efrati. And that defrothing has happened in large part because of Facebook’s performance over the last three months. It’s not just the social network’s stock that has failed to boom in the months following its public offering, fledgling tech companies are now having a hard time raising money, as a result. Rather than just fork over the bucks to an up-and-coming app, investors have a new found curiosity in potential profitability and revenue. See: investors want to put money into companies that will bring mega riches. Before, users were enough to feed those fantasies. But Facebook’s wimpy stock has since crushed that dream, making it harder for these other social media start-ups to convince investors to buy in.  Read more. [Image: Reuters] The growth bubble has popped for tech, too, not just in finance and housing.

theatlantic:

Facebook Has Officially Popped the Start-Up Bubble

Following Facebook’s IPO we declared a bubble burst and now we’re seeing that hit the start-up ecosystem as investor money becomes harder to find. ”The frothy bubble is over,” an analyst told The Wall Street Journal’s Pui Wing Tam and Amir Efrati. And that defrothing has happened in large part because of Facebook’s performance over the last three months. It’s not just the social network’s stock that has failed to boom in the months following its public offering, fledgling tech companies are now having a hard time raising money, as a result. Rather than just fork over the bucks to an up-and-coming app, investors have a new found curiosity in potential profitability and revenue. See: investors want to put money into companies that will bring mega riches. Before, users were enough to feed those fantasies. But Facebook’s wimpy stock has since crushed that dream, making it harder for these other social media start-ups to convince investors to buy in. 

Read more. [Image: Reuters]

The growth bubble has popped for tech, too, not just in finance and housing.

27 September 2012 92 theatlantic
growthtech bubble

Notes

  1. excessivetalk reblogged this from theatlantic
  2. thisisjamesj reblogged this from theatlantic
  3. hargrovescouch reblogged this from theatlantic and added:
    Revenue, kids. Revenue.
  4. imacwalker reblogged this from theatlantic
  5. wilhelmkant reblogged this from theatlantic
  6. prospitsprofitableprophet reblogged this from theatlantic and added:
    And then there’s Tumblr
  7. wunderrbar reblogged this from theatlantic
  8. dnophsif reblogged this from stoweboyd and added:
    via [stoweboyd: theatlantic:]
  9. secondverse reblogged this from theatlantic and added:
    This article ends with the following sentence: “Like Instagram, getting bought out by a big tech company may offer more...
  10. toiling reblogged this from theatlantic
  11. techerous reblogged this from stoweboyd and added:
    heeeyyy it finally happened.
  12. theredshoes reblogged this from theatlantic and added:
    Zuckster was certainly fitting as the Man of the Decade! or whatever the fuck it was.
  13. case-custom reblogged this from theatlantic
  14. ayaaai reblogged this from theatlantic
  15. museeum reblogged this from krisgetzman
  16. amexopenforum reblogged this from theatlantic and added:
    Facebook Has Officially Popped the Start-Up Bubble Read more. [Image: Reuters] (via theatlantic)
  17. ahandsomestark reblogged this from theatlantic
  18. krisgetzman reblogged this from stoweboyd
  19. thepete reblogged this from stoweboyd and added:
    Isn’t the tech industry all we had left that we had any hope in? America can’t hang all its hopes on Apple and Microsoft...
  20. christhilk reblogged this from theatlantic
  21. maudlinsmile reblogged this from theatlantic

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