Tag Archives: Startups

Are We Going Into A Tech Bubble?

With over-valuing startups and lots of money being thrown around in the technology sector, many may fear that we are close to a tech bubble that could burst. Excitement around startups and new technologies have made decisions easier for venture capitalists and investors to put their money into future technology.

Can we really say we are in tech bubble? The signs are showing that if we are then it is very different to the last one in 2000. With the success of Instagram which Facebook bought for $1biilion, it shows that some areas of the tech world are succeeding and are not showing signs of slowing down. With Instagram and Facebook now generating healthy revenues, the view of over-inflating are far from the reality. Snapchat, the photo sharing application which reportedly turned down a $3billion offer from Facebook, is growing well and its value would be several times higher today. These are some signs that the technology sector isn’t being over-inflated but showing genuine signs of growth.

On the other hand there have been some examples where some acquisitions have had a negative impact to the industry. Google paid $12.5billion for Motorola which then saw it be sold to Lenova for a much lower value ($3billion). Anticipating growth and competing with tech giants doesn’t also work through acquisitions. Back in 2011, Rupert Murdoch sold the popular social network, MySpace for $35million, only 6% of what News Corp had initially purchased it for. These examples show signs that gambling of short-term success may not get you far.

Overall, my verdict would be that if we are in a tech bubble and in a world of over-inflating acquisitions, then it is very different to the tech bubble which burst in 2000. Some areas of the industry are showing real optimism, whereas other areas are being gambled upon with no realistic long-term growth.

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Top 5 Fastest Growing Tech Cities

Technology is all around us and all over the world now. Starting up a new tech business can all depend on where you are located. Whilst Silicon Valley maybe the tech hub of the world, it’s not where you will see the fastest growth. Apple, Google and Facebook maybe based in the west coast of the US, but you may be surprised where you can gain the fastest growth for your tech startup…

As reported by Compass, the fastest growing tech cities for startups are:

1 – Berlin

Germany’s capital has seen a very fast growth to become the world’s fastest growing city in terms of technology startups. With a large influx of investors from venture capital and private equity funds, Berlin has grown to become the best city in the world  to start your tech business.

2 – Bangalore

Bangalore joins Berlin as one the top cities in the world to grow in term its technology and infrastructure. India has been a great country to outsource and grow the IT branch of any business. Bangalore has many tech companies that are based there and is the city with the highest number of engineering graduates in India.

3 – Sao Paulo

Brazil’s tech hub city of Sao Paulo is the fastest growing city in Latin America for tech startups. With the only South American city in the top 5, Sao Paulo has become a great place to begin a tech company. Sao Paulo is preferred to Rio De Janeiro because it is the financial epicentre of Brazil.

4 – London

London is the fourth fastest growing technology city in the world. Berlin took the number 1 spot from London but the UK has seen very fast growth for startups recently. Most tech companies are based in the Shoreditch area of London and range from app developers to e-commerce startups.

5 – Amsterdam

Amsterdam is the third fastest growing tech hub in Europe behind Berlin and London. With a range of business startups in the smart energy, software and digital health industries, Amsterdam is a great place to begin your tech business. Netflix and Uber have recently moved their headquarters to Amsterdam which shows that there are many advantages of starting up your company in Amsterdam.

Which city will you begin your tech startup in? Let me know in the comments below…

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