While this blog is mostly about engineering aspects of startup life, it is not indifferent to the overall situation in the world of startups. And no event in the past year was more anticipated than the Facebook IPO. I was pretty much convinced that general public will go crazy for Facebook's shares and that another technological bubble will start to inflate. Three weeks later, with Facebook's stock price one third below the IPO price, it is evident that people did not loose their mind over technological companies and that for now dotcom bubble of the late 90s is not about to repeat. On the contrary, the backlash of Facebook's IPO might even cool down red hot venture capital market as described in the following post by Paul Graham:
455 points by emilepetrone 8 hours ago | 129 comments Jessica and I had dinner recently with a prominent investor. He seemed sure the bad performance of the Facebook IPO will hurt the funding market for earlier stage startups. But no one knows yet how much. Possibly only a little. Possibly a lot, if it becomes a vicious circle.
- Fred Wilson's response to "Paul Graham's Letter to YC Companies" (avc.com)
- What Paul Graham and Fred Wilson are Really Saying (howardlindzon.com)
- RIP Good Times, Part II? The popping of the bubble that never was. (bernardi.me)