Tech Bubble

A lot of discussion has been taking place on the current tech investment landscape and whether a bubble is forming.  I've seen a lot of arguments for and a lot of arguments against.

However, my answer is more moderate.  While I do agree that valuations are getting ridiculous for startups with little or no long-term market prospects or viability (go back and read that Color article), I also believe that there is significant opportunity in the market for great solutions to big problems and that there remain substantial businesses amid the startup fodder.

I believe that the key is sustainability and a strong value proposition.  Mark Suster discusses (brilliantly, I might add) the need to capture share of mind and find a sustainable value proposition.  Those that create more than a short-term virality (for a definition, see the presentation by Jonah Peretti of Buzzfeed) will be able to grow and survive.

Above all, I think the focus must be on reality and not hysteria.