The Bird\’s Eye View

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\"RR_lemmings-RD2\"Actually, lemmings are a lot cuter than most investors, but investors are sure acting like lemmings, all heading over the proverbial cliff.  And while lemmings in real life do not partake in mass suicide, venture investors in real life have been, and continue to, inflate a massive suicidal “bubble,” metaphorically floating above Silicon Valley in danger of popping any day now.

In this flat economy, with billions of dollars of “dry powder” (sitting on the sidelines), the ‘lemmings’ are frantically looking for the next Facebook or Bonobos or the new ‘cool’ to throw money at. According to PWC, in 2012, 65% of venture capital ($8.3 billion) was invested in 1,266 deals in the software industry, up 10% over 2011, and the highest since 2001.

So, there are ‘next big things’ popping up all over the place, dreamed up by Zuckerberg wannabes, (whose ‘big thing’ is now a big question, by the way).  And big cash is being ‘burned’ through like there’s no tomorrow, as nine out of ten of them aren’t making a dime.  Bubble, bubble, toil and trouble, or something like that, as the bubble inflates to its popping point.



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