How do we know Silicon Valley is inflating an unsustainable tech investment bubble? Because Hollywood dope Ashton Kutcher and his technologically enhanced mate Demi Moore have somehow become mascots for tech investment. Sell, by God. Sell!
"In Silicon Valley, investors are jockeying like it's 1999," is how the Wall Street Journal summarizes the bubblicious mood today, before cataloging all the ways Silicon Valley investors are multiplying and going crazy. Among the most damning details is a quote from Biz Stone, co-founder of wildly overvalued microblogging service Twitter, who says that even he thinks "these numbers don't seem real... People beyond the usual suspects are trying to get in."
At a Los Angeles "Startup Weekend" in February, Bo Fishback pitched his young company for all of one minute. Its product is Zaarly, a mobile application that asks users to name what they need quickly (from a personal assistant to a dog-walker), then brokers the transaction based on what users are willing to pay.
After the brief presentation, actress Demi Moore tweeted about the company. She noted that "everything has a price!"-a reference to her role in the film "Indecent Proposal," about a man's $1 million offer to borrow a stranger's wife for a night. Within 48 hours, Zaarly raised its first seed round of $1 million.
Among those piling into the deal, according to Mr. Fishback: Ms. Moore's husband, the actor Ashton Kutcher, and Lightbank, a venture fund created by the founders of online-coupon giant Groupon.
On the strength of such sage investment wisdom, venture capital investment rose 76 percent in the first quarter of 2011 to $7 billion, according to the National Venture Capital Association. This should end well!
[Photo via Getty Images]