Wall Street Journal, 3/24/11
Silicon Valley has been edging into what some people see as bubble territory, given the clamor by investors to pour money into fast-growing Web companies such as Facebook Inc., Twitter Inc. and Zynga Inc., which has pushed up their valuations.
But Greylock Partners venture capitalists David Sze and Reid Hoffman, also a founder of LinkedIn Corp., argue that is far from the case. The investors, whose firm has backed Facebook and daily deals site Groupon Inc., among others, say Silicon Valley’s latest crop of Web companies have real revenue and viable business models—unlike the dot-com companies that crashed after the 2000 tech bubble.
Mr. Sze, 45 years old, and Mr. Hoffman, 43, add that all the Web activity is helping to spur a broad economic recovery here. In a reflection of their optimism, Greylock reopened its most-recent venture fund and raised an additional $425 million to invest in start-ups, for a total of $1 billion.