Hearbreaking: The Social Media IPO Bubble . . .
Is preventing further inflation of the renewabubble:
Amidst all of the champagne cork-popping and bubble talk in the wake of the LinkedIn IPO Thursday morning, (high-five to Reid Hoffman) I’ll offer up this downer: The LinkedIn IPO is bad for the cleantech industry. No, not for the future progress of green technologies in general; LinkedIn’s stock shooting up over 100 percent on the first day has nothing directly to do with how cheap solar panels can get, or if people will embrace electric cars.
But as a second bubble appears to be growing around venture capitalists investing in web companies, the generalist venture capitalists that tested the greentech waters several years ago are now fleeing, returning to investing in the web, and are also having a nasty case of envy over the returns the consumer web companies are delivering their investors. The killer LinkedIn IPO — one of the biggest web IPOs since Google — will only increase that shift.
It’s a sentiment we’ve pondered before (Cleantech Officially Less Cool Than Groupon). As Kevin Surace, CEO of Serious Materials, said last month during a panel at the SolarTech summit, “No one in cleantech is worth (billions). Yet you can create this small online team that creates billions of dollars in market cap [Groupon].” LinkedIn now has a market value of more than $9 billion for what is basically a very successful website for resumes and job listings.
The rest here.