2. The State Of Startups
(No, It’s Not A Bubble)
May 3, 2012
Henry Blodget
CEO, Business Insider
3. Henry Blodget
Founder, CEO & Editor-in-Chief,
Business Insider
Pascal-Emmanuel Gobry, Senior Analyst
Alex Cocotas, Analyst
We’ve launched a new industry intelligence service for executives and investors.
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30. Do you see a parabolic pattern now?
NASDAQ: 1971-2012
31. How about VCs? Are they going
hog wild as in the 1990s? (Nope)
Total VC Investments By Quarter, 1995-2012
32. Two important characteristics of
ACTUAL bubbles…
• Sky-high valuations relative to
fundamentals…
• Everyone justifying those prices
by saying “It’s different this time.”
59. What about these other startups that
initially had “NO REVENUE”?...
• Google
• Facebook
• Twitter
• Every biotech company
• Every car company
• Every real-estate project
• Every exploration company
• And so on…
60. To say a startup is
worthless because it
has “no revenue” is
moronic.
61. Some other Facebook-Instagram
considerations…
• Facebook sucks at mobile
• Instagram threatens a core Facebook service
• Twitter, Google, et al, might buy Instagram
• Facebook is valued at $100 billion
62. So, what was Mr. Zuckerberg’s logic?
“I can spend 1% of my company to buy the
hottest startup in a massive sector that threatens
my core business, eliminate a competitor, and
make sure my competitors don’t get it first?”