The Coming App-ocalypse – are we seeing Dot-Com 2.0?
Bubble 2.0?
I recently received a note from a colleague from ZeroHedge (http://www.zerohedge.com/news/2014-11-21/not-so-fab-1-billion-valuation-15-million-year) that was officially calling the beginning of the bubble bursting based on the untimely (or timely depending on your perspective) demise of the startup Fab. I had never heard of Fab, but according to ZeroHedge, Fab “started out as a dating site for the gay community and then relaunched as a flash sale site for home decor – raised $150 million just over a year ago (at a $1 billion valuation), but as TechCrunch reports today, multiple sources have confirmed that Fab is in talks to sell to PCH International for $15 million in a half cash and half stock deal. Pets.com?”
And Therefore…
Its a fair question indeed – are we seeing the same pattern we saw in the last bubble (i.e. Dot-Com 1.0) being repeated? Certainly, crazy valuations of equally crazy or non-existent business models are a cause for concern, but more important than that are the fundamentals of what is driving the speculation in the first place. In Dot-Com 1.0 we saw simultaneous speculative investment across at least 3 major areas: internet backbone infrastructure, internet edge/access Continue reading



