With a recent record of 107 unicorns worldwide, the discussion over whether we are in a tech bubble has intensified. We’d like to present two conflicting viewpoints, from Jay Samit, CEO of SeaChange International, and from Conor Dougherty, technology correspondent of the New York Times.
While in disagreement over whether the market is currently in a bubble, both authors discuss the overvaluation of many tech companies. As venture capital firms invest rising amounts of money into startups, many companies become reliant on this financing and thus lack the ability to grow independently of their investors. What this means for tech startups is that when the inevitable public offerings occur, valuations will likely fall in a public market unable and unwilling to invest in them all. It is the companies that place an emphasis on disruptive technology with sustainable revenue models and profitability that will last.