This year was tough for a number of recently IPO’d companies, from Facebook and Zynga to the now spiralling GroupOn. A new year approaches, and the economic recovery continues at a relatively slow pace. Now tech companies and investors look ahead to 2013: Will there be enough investors to keep the sector afloat? Or is the tech industry heading for the same fate as the dot-com bubble in 2000? In this edition of The Exchange we ask participants: Is the tech and investing bubble going to burst in 2013?
— Todd Dagres, co-founder and general partner of Spark Capital, says the tech bubble will burst because the industry has too many start-ups and not enough investors, forcing companies into a fierce game of musical chairs.
— Joseph Payne, chief executive of Eloqua, does not believe the tech bubble will burst in 2013 and points out that companies that make Software-as-a-Service products are going strong and showing no signs of stalling.