I’m no economist, but I’m not too worried about all the current “bubble” talk. Yes, valuations are high and there’s a lot of money around, but I also see a lot of companies — including a lot of the supposed “unicorns” “private companies with valuations over $1 billion” — that are building products that really do something.
Yes, there are a lot of dopey apps that do dumb stuff no one really needs, but as far as I can tell they aren’t dealing in big money. They come and go without too much impact other than on their employees.
Whether or not Uber is worth $50 billion is another story, and by that I mean, to use a high-finance term, WTF?
But regardless of whether or not the current crop of tech companies can provide lasting value to customers, employees and shareholders, VC money is causing some weird stuff. Real companies providing serious software to meet real business needs are getting big chunks of money to build and grow. Nothing wrong with that, but it also means companies are spending money in ways that previously only established companies would have tried. These days you can grow and scale and market yourself like a big shot on somebody else’s dime. And there are a lot of dimes around.
For instance…
One of my colleagues got a postcard before Dreamforce promising him an Apple Watch if he came to another tech company’s booth for a demo. Not a chance to win an Apple Watch. An actual watch, just for him, just for watching a demo. He went, he watched the demo, he got an Apple Watch. He didn’t misrepresent himself, his interest in their product or his role in the decision-making process.
I’ve also heard of another company at Dreamforce who made “wanted posters” with the names and photos of CMOs they wanted to meet. They handed them out at the CMOs’ company booths and promised the booth staff 50 bucks if they brought their CMO by, essentially offering a bounty. If the CMO came by of her own volition, they handed her a hundo.
I now work for a VC-funded tech startup, so I’m not pointing fingers or decrying, you know, anything. But I also work with seasoned business people. We seem to be keeping an eye on our money, which I appreciate. The big-money shenanigans seem strange and unreal to me, and they make me uncomfortable.
Bottom line, I’m just bitter I didn’t get an Apple Watch.