February 9, 2014

BUSINESS NEWS: Entrepreneurs: ‘Startup Bubble’ Does Not Exist

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With the increasingly high market value of startup companies, some finance gurus believe there is a startup bubble waiting to pop. Cornell entrepreneurs and professors disagree, saying that the bubble does not exist.

A true market bubble is characterized by a rapid rise in equity markets due to investment in a growing trend that is not completely backed by actual value product. A notable example is the dot-com bubble of the late 1990s, which resulted from the boom in Internet-based companies.

Startups such as the PopShop receive investor funding for tangible business ventures, ensuring the stability of the startup equity market, professors say. (Dani Neuharth / Sun Staff Photographer)

The engine of growth in the late 90s was the Internet itself, the engine of growth right now is more the apps [and mobile] space.” — Pedro Perez