As the rest of the United States falls into the depths of economic turmoil, Silicon Valley has set itself apart as untouchable and immune to despair. But, according to The New York Times today, Silicon Valley's protective bubble, it seems, has been pinpricked.
The Times cites several factors suggesting that Silicon Valley -- despite its assumed superhuman strength -- is faltering under the weight of a slowing economy: Job growth has slowed; investors are acting frugal; acquisitions of small startups by large companies are on the decline; fewer companies are going public; Mark Zuckerberg has stopped wearing Adidas sandals... (just kidding about that last one -- things aren't that bad! Whew!)
Does any of this sound familiar?
We've been predicting the second coming of the bursting bubble all along. In fact, our reader survey back in ye olde December showed that the majority of IE readers, too, expect the worst. And this burst seems all the more inevitable now that we're facing a slumping economy, with people fearful of investing in what once were the most stable markets.
ThinkerNetter, and author of the book Jump Point: How Network Culture Is Revolutionizing Business, Tom Hayes, however, tends to disagree.
"In Silicon Valley, we don't do recession, we do reinvention," says Hayes who was the founding CEO and chairman of Joint Venture: Silicon Valley, which, he says, led the Valley out of its downturn in the 1990s.
"There are myriad projects underway right now in every corner of the Valley... In a converse, perhaps, perverse way, brief economic pullbacks are good for growth economies like ours," he says. "Give us another 100 days and you will see what I mean. The flow of new products and applications coming out of our labs and fabs will be awe-inspiring."
— Nicole Ferraro, Site Editor, Internet Evolution