To Om’s credit, it’s a good article with some very informative graphs and some nice comparisons to pre-bubble company valuations.
Once again though, I’m starting to get that feeling that everyone is thinking their startup will get acquired, and that a real business model doesn’t matter.
Luckily, things are so cheap now and these companies are for the most part staying tight and small.
I think the startups that may succeed at this point are the ones that use these new technologies and social aspects of the web, but also have a revenue-generating business model in their business. Especially if that revenue model is not just Google Adsense or charging users for the service.