The Wall Street Journal has shed some light on a current trend in Silicon Valley, the high valuation of certain closely held consumer web companies that have little or no revenue and no product on the market, similar to the trend that we all know as the 1990s dot-com boom. Is this cause for concern or did we learn from the last go-around? Some folks are worried and others are bullish. I think this could be a function of the fact that web companies can take off faster than ever as a result of the growth, scale and influence of the internet. Not as much is needed to get things off the ground leaving the power in the hands of the entrepreneurs. They are able to decide when to accept funding and at what terms because they don't need it as soon or as much as their predecessors. They have the power to drive valuations.
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