Allos Ventures

Random Thoughts on Building Venture-Backed Companies in the Midwest

Why Facebook’s face-plant is a good thing

8.24.12 by Dov

Quick – what do Facebook (down 50% since its IPO), Zynga (65%), and Groupon (83%) have in common?

Kent Bernhard argues that the disaster that is publicly-traded Facebook is a good thing because “Startups will have to prove themselves as business instead of just services”. And while he’s focused on Facebook, presumably it’s true of the other recent high-profile venture-backed “eyeballs without profit” companies.

If only it were true. I’m pretty sure we were all told that investors had learned this lesson once before. If the third time’s the charm, I think we have one more bubble still to go.

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