Wall Street is governed by only two emotions: fear and greed. When greed goes bust, fear takes over. After being scared long enough, greed returns. This week saw a seven IPOs scheduled, the most in two years according to Reuters. A year ago fear was the new greed... I fear that greed is now the new fear.
Venture Capital and High Tech also only have fear and greed in our emotional palette, and guess which one is driving a $1 billion dollar valuation for Twitter ... the company with no revenue model.
So, thank goodness for some sanity: a clear-headed strategy by the folks at collaboration software company 37Signals has lead to a valuation of $100 billion because of a "group of investors who have agreed to purchase 0.000000001% of the company in exchange for $1." (Tip of the hat to Jared Rosoff for pointing me at this one.)
"And that's the way it is."
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