You're right to fear a second dot-com crash, says Intel VC boss

Fears of another technology startup bubble bursting are "legitimate," says the outgoing head of Intel's venture capital arm. As a result, the chip biz is playing it safe in "overheated sectors" of the market, and looking overseas for the next big thing. It's not widely known but Intel Capital is one of the largest venture …

[allthecoolshortnamesweretaken]

Déja vu

Here we go again, as per usual. Then, it was DOTCOM, now it's CloudCrap (TM) and social media, in a couple of years it will be something else.

The sad thing is: among a lot of pointless, useless, stupid ideas are always a few with real potential, and the bursting bubble will kill most of them as well.

Music tip: http://jazztimes.com/articles/12023-dot-com-blues-jimmy-smith

[goodjudge]

This, on the day after a company that makes mobile phone games was deemed to be more valuable than the GDP of a few dozen individual countries:

http://www.bbc.co.uk/news/technology-34710511

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

Oh no, no bubble here sir. Move along, nothing to see, everything's under control...

[Anonymous Coward]

Well, that was obvious. There are far too many companies valued far too highly based almost entirely on hype about potential revenue instead of actual revenue. Reddit, Uber,Twitter etc.

[Jay 2]

Indeed. Why is it that most IT types (like most of the El Reg readership) can spot that many a dotcom enterprise is doomed to failure (as it's either stupid or has no business plan), but all these bankers and investors can't?

[Anonymous Coward]

Because Jay 2, all those bankers and ......

investors are really, really, high on the kind of drugs that we Reg readers could never afford because we all have to work for a living and keep our wits about us.

If all you ever do is lie, cheat and steal for a living; you really don't have to know much or even have the capacity to. As evidenced by the actions of bankers, politicians and lawyers everywhere.

[Naselus]

"Why is it that most IT types (like most of the El Reg readership) can spot that many a dotcom enterprise is doomed to failure (as it's either stupid or has no business plan), but all these bankers and investors can't?"

Why would they care?

VCs are looking to exit with their profits by the IPO. Bankers bet on both horses and will make money either way. Whether the company is a remotely sensible idea or not is really not that important.

[Anonymous Coward]

Reddit, Uber,Twitter etc.

By the time Uber goes under, however, the London taxi system will be completely eroded. "Disruption" - well, perhaps some former Nazi will emerge from Paraguay and claim that the invasion of Eastern Europe and Russia was just "disruptive technology" doing its thing.

[Trollslayer]

Just for Intel and friends

The smaller players have been getting stronger, partly due to being able to put together their own chips due to the likes of ARM.

Add IoT and AMD, Intel etc. are in trouble.

Nvidia are into high performance computing so they have diversified enough.