Comments on: The looming exit bubble of 2012 http://www.discourseandnotes.com/blog/2010/03/18/the-looming-exit-bubble-of-2012/ Sun, 04 Dec 2011 14:19:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dan http://www.discourseandnotes.com/blog/2010/03/18/the-looming-exit-bubble-of-2012/comment-page-1/#comment-107 Dan Sat, 20 Mar 2010 18:32:11 +0000 http://discourseandnotes.com/blog/?p=876#comment-107 In a prior post on a different though related subject (<a href="http://bit.ly/aWHDkm" rel="nofollow">http://bit.ly/aWHDkm</a>), I discussed the subject of "bubbles" as follows: "Bubbles don’t happen because valuations are high. Bubbles happen because valuations are in excess of what business fundamentals can reasonably justify. As the word implies, a bubble occurs when that which is solid is supplanted by air. Thus, it is quite possible for bubbles to occur even in a low valuation environment."<br><br>But I understand that this is an oversimplification and raises a series of more complex questions. In a prior post on a different though related subject (http://bit.ly/aWHDkm), I discussed the subject of “bubbles” as follows: “Bubbles don’t happen because valuations are high. Bubbles happen because valuations are in excess of what business fundamentals can reasonably justify. As the word implies, a bubble occurs when that which is solid is supplanted by air. Thus, it is quite possible for bubbles to occur even in a low valuation environment.”

But I understand that this is an oversimplification and raises a series of more complex questions.

]]> By: davidkpark http://www.discourseandnotes.com/blog/2010/03/18/the-looming-exit-bubble-of-2012/comment-page-1/#comment-106 davidkpark Sat, 20 Mar 2010 18:10:48 +0000 http://discourseandnotes.com/blog/?p=876#comment-106 Yes, but a lot this revolves around how we define a "bubble" and how we can see prospectively see this bubble. I know in academia how one defines a bubble is very tricky. Yes, but a lot this revolves around how we define a “bubble” and how we can see prospectively see this bubble. I know in academia how one defines a bubble is very tricky.

]]> By: Dan http://www.discourseandnotes.com/blog/2010/03/18/the-looming-exit-bubble-of-2012/comment-page-1/#comment-105 Dan Sat, 20 Mar 2010 17:59:23 +0000 http://discourseandnotes.com/blog/?p=876#comment-105 Agreed. And the abundance of seed VC capital is arguably itself a bubble, which will require traditional VC to follow on, which will require exits as discussed... so there could be a chain reaction of bubbles that are needed. Not unlike the public market, in some ways. Agreed. And the abundance of seed VC capital is arguably itself a bubble, which will require traditional VC to follow on, which will require exits as discussed… so there could be a chain reaction of bubbles that are needed. Not unlike the public market, in some ways.

]]> By: davidkpark http://www.discourseandnotes.com/blog/2010/03/18/the-looming-exit-bubble-of-2012/comment-page-1/#comment-104 davidkpark Sat, 20 Mar 2010 17:47:52 +0000 http://discourseandnotes.com/blog/?p=876#comment-104 I think that's why there's such a plethora of seed VC's sprouting up because the existing VC structure is broken. The huge funds raised by traditional VCs and the subsequent exits required by them are just unsustainable. I think that's why there's such a plethora of seed VC's sprouting up because the existing VC structure is broken. The huge funds raised by traditional VCs and the subsequent exits required by them are just unsustainable.

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