Well before the first dot-com bubble burst in March of 2000, it was pretty clear that the party was going to end sometime—probably badly, and probably sooner rather than later. But recognizing that the market would soon turn wasn’t very helpful by itself. The real problem was, what do you do about it?
This question jumped out at me again as I read Benchmark partner Bill Gurley’s comments in the Wall Street Journal on Monday. Mr. Gurley thinks it’s 1999 again, more or less. Marc Andreessen of all people—the leading cheerleader for the current tech boom—tweeted his agreement. The notion that tech startups are overvalued is now conventional wisdom in Silicon Valley. But again there is that pesky question: what’s an investor or entrepreneur to do?