Tiny Bubbles

from the keeping-the-tap-open dept

Red Herring has an interesting column trying to stretch the "bubble" analogy a bit further than usual when it comes to venture capital. Basically, the writer points out that if you open a faucet, even just a little bit, over a still pool of water, you form many little bubbles - and that's what's happening now in the venture capital world. Some venture money is clearly flowing out of the faucet, and people keep looking for the "next bubble", but there are a really just a bunch of small, directed, niche bubbles - none of which are likely to grow all that big, or become a prime focus for venture capitalists.
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