Every stock was down when the markets closed yesterday, leading some investors to wonder whether this signals the end of the 2.0 bubble. “Investors will flock to more conservative fields in uncertain periods,” says Mark G. Heesen of the National Venture Capital Association. He believes that this will slow down the release of new IPOs, particularly by Silicon Valley companies. The value of LinkedIn stock doubled in the 24 hours since it was released, but now it is down 17 percent, while Pandora shares are now below their initial IPO price.
Of course, these figures could also be the result of inflated prices and unwarranted expectations. John Frankel of ff Venture Capital believes that the effect of yesterday’s market drop is short term: “In the longer term, I don’t think it disrupts me one iota. I’m still having meetings with companies, I’m still putting up funds,” he said.
Brad Feld of the Foundry Group and Tom Evslin of Fractals of Change had similar messages to investors and start-ups alike: “Don’t watch the Dow,” Evslin put it succinctly in his blog. Feld took it one step further in what he called a “Public Service Announcement.”
He told investors and startup to “Take a deep breath” and “get back to work on something you can have an impact on!” It’s all “noise,” he said.
Will Spending Cuts Impact Silicon Valley? 
