IT'S OFFICIAL -- STARTUPS ARE A BUBBLE -- THE DUMB MONEY HAS ARRIVED

Is the tech industry in a bubble? Influential and well-informed leaders in the field have started to worry, and are speaking out unequivocally about reckless investors, rising valuations and the misuse of technical talent resulting from the abundance of eager, loaded tech hobbyists who are throwing money at bad ideas.

“We’re in a boom right now, and there will be a bust at some point that will come on the back of this boom,” said Fred Wilson, a managing partner at Union Square Ventures, in an interview last Wednesday. “Some people will lose money and some companies will go out of business and some people will get hurt financially, and there will be a hangover associated with the party. I think that’s inevitable.”

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