I believe that the world of tech entrepreneurship is definitely in a bubble. But more than a startup bubble, we're in a coder talent bubble. Take a minute to read 2012 is for buying startups. Companies are getting bought not because they made anything of value or with a revenue model, they're getting bought more and more because the acquirers need more engineers. Have you looked at the list of sponsors for any hackathons lately? Huge companies (Google, Yahoo!, and Facebook come to mind) have sponsored several small hackathons reasonably close to the Philly area in just the past few months. They're not doing it mainly because it's a good thing to do, they're doing it because it's a recruitment tool and they desperately need to find engineers. (But keep doing it! Hackathons are awesome!) And then there's this phenomenon:
This is based on a comment I wrote on the Mashable post Why Instagram Was Worth $1 Billion to Facebook which has absolutely no explanation of why Instagram was worth $1 billion to Facebook.
How can you have a whole post about how Instagram was worth $1 Billion and have absolutely zero numbers in it? Yet that's what we're seeing all over the internet in the wake of Facebook's billion-dollar acquisition. Many people have explained why Facebook bought Instagram, but few have explained the valuation. Explanations for the purchase generally break down into these points:
Isaac is a product manager, programmer, author, founder, investor, and game developer. Cookies are his kryptonite.
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