Brandon Lipman, co-founder of ThreeDLT and TechCrunch contributor, discusses which technology sectors are best positioned to survive a potential tech bubble.
Insight
Lipman: Tech market bubbles yield long-term benefits and valuable lessons
“A lot of people are looking at it through a negative lens, but there are lots of benefits to a potential bubble, and I think that in the long-term perspective, if we look from 2000 to now, I think that the 2000 bubble, or the, you know, dot-com bubble, has giv…”
Assertion Supported
Lipman: Seed round volume is dropping while average round sizes grow
“I think it's, the amount of seed seed rounds are decreasing, but the amount of seed funding in the rounds themselves is increasing.”
Insight
Lipman: VCs are reducing deal volume to provide better portfolio support
“And I think that investors are starting to recognize that. And that's why they might be also scaling back on the number of deals they're making, so they can make sure they're adding enough value to the companies that are in their portfolios.”
Prediction Not checkable as stated
Lipman: Consumer tech startups face high bubble risk due to premature scaling
“I see consumer tech as an area where, I mean, from a service level, I see there being a potential fluctuation or a difficulty because a lot of these consumer tech startups are starting or making assumptions too early and potentially not having the product mark…”
Assertion Partly supported
Lipman: Uber raised $4.9B at $41B valuation versus Lyft's $862M at $2B
“I think the last time I looked, when I was online here Uber raised 4.9 billion at a forty one billion dollar valuation. Better lift. That's in total. And, Lyft has raised, you know, 862 and a half million at two billion dollar valuation.”
Assertion Supported
Lipman: Two-year-old Slack valued at $2.8B compared to Etsy's $3.5B IPO
“And when you look at, like, the recent IPO this week of Etsy you know, they're a ten-year-old company, and Slack, You know, is a, you know, two-year-old company, and they, Slack is valued at a two-point-eight billion dollar valuation, where Etsy is, you know, …”