Comments on: The Responsibility of Middleware This sort of dilemma is pretty common in other fields. I used to own a large chunk of a small tools company (in a completely different space) that got bought up by one of the big players in the field. Though they continue to sell the tools, quality and features have suffered, much to the annoyance of customers. What you're seeing is the effect of too much money. Valuations on these little companies are much too high. $10-$20M for a company that's just getting around to launching its first product? Absurd. But there's giant piles of money sloshing around, so that's what we'll continue to see for a while. There really is no logic to it. It's just the sort of chaos you see until a field matures. I'm sure any number of people will jump in and say "That valuation isn't too high!" And hell, you would too if you were in line for a chunk of that money. This sort of dilemma is pretty common in other fields. I used to own a large chunk of a small tools company (in a completely different space) that got bought up by one of the big players in the field. Though they continue to sell the tools, quality and features have suffered, much to the annoyance of customers.

What you’re seeing is the effect of too much money. Valuations on these little companies are much too high. $10-$20M for a company that’s just getting around to launching its first product? Absurd. But there’s giant piles of money sloshing around, so that’s what we’ll continue to see for a while.

There really is no logic to it. It’s just the sort of chaos you see until a field matures.

I’m sure any number of people will jump in and say “That valuation isn’t too high!” And hell, you would too if you were in line for a chunk of that money.

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