Is There Another Silicon Valley Bubble?
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I was reading this article today that is talking about how even the normally adventurous venture capitalists, yes the same ones that caused the last dotcom bubble, are getting worried about the rampant spending of start ups in Silicon Valley. The article talks about how the bubble can break and obviously bring down the economy but also bring down IT jobs.
The economy I get, we have seen that. But I wonder about the IT jobs portion. I have been to Silicon Valley and have worked with a lot of people out there and one of the things that really stands out is that there is almost no IT there. Tons of small companies loaded with tech people mostly in the software development space and lots of business people but nearly no IT. Of course there is IT everywhere, but startups especially tend to run without IT. Even if a bubble were to burst there, how much is that likely to impact the IT field? My guess is, extremely little. There just are not very many IT jobs in the SV startup game.
Now impacting developers, that is a completely different story. Silicon Valley is the world's largest employer of software talent.
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@scottalanmiller You would think the new startups would have learned from the last dotcom collapse, but really, these are probably the same people, with new money, doing the same thing.
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What they learned from the last one was that the people who got in, leveraged the bubble and knew to get out made out like bandits. So it just encouraged everyone to do it again.
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@scottalanmiller said:
at caused the last dotcom bubble, are getting worried about the rampant spending of start ups in Silicon Valley. The article talks about how the bubble can break and obviously bring down the economy but also bring down IT jobs.
I was thinking about this the other day myself. It seems like there were lots of jobs with high pay prior to the last bubble, but once that busted, it seems that the numbers dwindled and pay dropped. I also think a lot of trust or perceived value of IT professionals dropped as well if that make sense. Maybe I'm just thinking of the "Blame IT for Every Problem" memes that users perpetuate.
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IT was a big piece of the last bubble, the dotcom bubble. It is not a part of this one, though.
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At least these guys realize how stupid it is and it's only really feasible for the time you are getting venture capital.
