News: Silicon Valley Booms but Worries About a New Bust - NYTimes.com

25 August 2011 12:37 AM CDT


If you read my previous post (about the article Marc Andreessen had in the WSJ about software taking over the world), then it should come as no surprise that I'm not particularly concerned about a new tech bubble.  Yes, there are plenty of tech companies that won't survive for much longer.  For example, many people know I'm not the biggest fan of Groupon.  But, there are many other companies that are actually generating revenue and humming right along.  There may be a bit of frothiness in the market, but that shouldn't taint the valid players in the tech space.

I found this article interesting for a few reasons.  In Silicon Valley, the new rich are plowing their money back into other businesses.  They're investing.  They're not as concerned with consumerism, they're more concerned with fueling growth and the economy.  Rather than spend lavishly and fuel consumer culture they're investing in the future - the future they want to see.  That's an interesting and refreshing dynamic.  They're trying to create wealth, which I think should be viewed as a good thing.

Dennis Crowley (founder of Foursquare) scoffed at comparisons to 1999.  Today, he said, "companies get a lot more done with a lot less capital."  He also said, "there are so many more people on the internet ... My grandmother knows how to shop on Amazon ... There is real money to be made."

I agree with Mr. Crowley and I commend the new rich and their desire to invest in the future of technology.