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March 2, 2011 09:38 am GMT

Angel-Turned-VC Mike Maples: Yes, There's a Bubble

The dreaded "B" word is on the tip of many tongues these days. Are we or aren't we in a bubble? Everybody has an opinion. Yes, Facebook's valuation lingers around $50 billion, Zynga's is close to $10 billion, and Twitter is valued at $4.5 billion with comparatively tiny revenues. But do these soaring valuations a bubble make? A couple of weeks ago, Eric Schmidt weighed in on the great overblown bubble debate to say that the high rate of valuations do, in fact, mark a clear sign of a growing bubble. While, in contrast, Paul Graham said last week that, compared to late '90s when every company even remotely associated with this hot, newfangled "Web" was valued higher simply by being associated with it, today's high valuations are more localized and the companies more deserving. Yet, perhaps the question is not whether this is a bubble exactly like that of the dotcom era, but whether or not it is, simply, a bubble.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/oCLEXcc6jEI/

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