Spending is skyrocketing in Silicon Valley. According to the cover story of the August issue of Fortune, one brand of balsamic vinegar that's been "aged for a long period of time" sells in a Menlo Park grocery store for $40 a teaspoon. Housing prices are exploding, too -- one mansion cited in the article hit the market at $1.9 million and sold for nearly $3 million a few weeks later. And the local Tesla dealership is flooded with twentysomethings waving fresh checks for $100,000 electric cars. It sounds like the 90s but with better gadgets and bigger numbers.
There's a ton of money being spent in Silicon Valley because, like at the end of the 1990s, there's a ton of money being made in Silicon Valley lately. This has been true for the past couple of years, but with LinkedIn's explosive success on Wall Street and Zynga's recent $1 billion IPO filing, we're starting to see more and more articles about the social media bubble. Also known as the Tech Bubble 2.0. Or: The Scary Redux of Silicon Valley circa 1999. In May, we noticed that venture capitalists seemed exceedingly optimistic that the tides had turned since a low point in 2008, when Sequoia Capital--"the best venture capital firm on the planet" according to entrepreneur and angel investor Chris Dixon--released a "slideshow of doom" marking the death of easy money in Silicon Valley. Many news cycles later, the venture capitalists continue to sound confident. They're also the ones who stand to make another ton of money if all goes well.
Read the full story at The Atlantic Wire.
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