This tech bubble is worse than the one that popped in 2001. You hear it all day on CNBC and Fox Business News but when somebody that I admire like Mark Cuban speaks up and says it on Blog Maverick the world starts to gossip as if they wondered what color that dress really was? Do you remember that viral trend from earlier this month or did you forget about that already?
We have short memories of the past and investors tend to go blind to history even as it repeats itself over and over again. Same song different lyrics, Mr. Lefsetz. But just because this bubble is bigger does not mean that it ends as badly as the last. We had a lot of external factors last time and many felt the companies being built were not real. But compare the number of failed startups over the last 3 years to those that failed from 1999-2002 and you might be shocked to find that Cuban is right. (Here’s just a fraction of failed startups.) Some things feel like they will live forever and continue to grow in popularity but yet they fizzle out because the funding runs out or the product, app, or software was not viable for the masses.