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Is a tech bust coming soon?

Tuesday, September 18, 2007 by Dave Winer.

A picture named hope.jpgFred Wilson thinks so. Permalink to this paragraph

And I agree. Permalink to this paragraph

The reason the tech sector runs in cycles of euphoric booms and deep busts is that there is little support for long-term investment in tech. The new concepts that will fuel the next boom cycle are already here, but there isn't enough money flowing into developing them. The ideas that are getting investment are more and more derivative of the original idea that fueled the boom cycle that is now (likely) coming to an end. Permalink to this paragraph

If you look back at the last two busts, there was one in the early 90s when the software boom had run out of juice, and then in the early 00s when the web boom had run its course. In both cases, the seeds of the next boom were already planted, but the investors weren't pushing money in their direction. The savior after the early 90s bust was the web, and the second was what they call Web 2.0, which is a really lame way to describe the networked creative environment, what I called the Two-Way Web. Permalink to this paragraph

I'm going to be in NY in October, and I hope to meet with Fred and other investors to talk about how we can soften the busts and enhance the booms. Permalink to this paragraph

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Last update: 9/18/07; 3:32:39 PM Pacific. "It's even worse than it appears."

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