Monday, September 22, 2014

Is the Dotcom Bubble Destined to Repeat Itself?

With all the success technology has been having recently we have seen a huge increase in investments from private sectors.  Experts are seeing investments reach record highs just like back in the hay days before the dotcom bubble. 

For those who don’t recall, the dotcom era was a time in the 90’s where people were investing in tech companies feverishly.  People were trying to gobble up all the companies they could in the hopes of hitting it big.



 
A piece has recently been published in which respected venture capitalist Bill Gurley told The Wall Street Journal  the “Huge amount of capital pouring into startups-and the great expectations all that money represents-is forcing new companies to spend more, and faster, than they have in 15 years. So much spending sets companies up for a fall if the funding dries up and they still have big bill to pay.

It seems though that people are not paying attention to this warning digging themselves deeper by the day.  The problem is if your competitor is spending then you must spend to also keep up.  The experts seem to divide 50/50.  Half of the experts seem to feel like the market is strong and this is the time to continue pumping funds into new businesses while others feel like we are seeing a reoccurrence of what happened in 1999. 

Unlike the 90’s tech companies now are concentrating on tangible products.  People aren’t trying to sell ideas anymore, they are more concentrated on making a product or a service that will make a person’s life easier.  Take for example the new field of home automation. 

In the last 10 years home automation has been making moves.  Companies like Nest Labs have created a product that saves you money on your energy bills by creating smart thermostats that can keep a close look on your energy consumption.  These companies are thriving.  Nest lasb recently was bought out by Google for 3.2 billion dollars. 

Companies like Cyber Technologies provides some of the best products on the market for home automation, security systems and system integrations.  For more information contact Cyber Technology today for the following services:

Fairfield Alarm Systems

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