Excerpt from a stark Bubble 2.0 reality check
Q: How does this all play out?
Parker: I think that when the large established players are done going public, you'll see a few companies that are not ready to go public try. And if the market gets frothy enough, a few of those companies, which are too dependent on bubble economics, will go public and you'll start to see those companies going terribly wrong and then you'll see a lot of losses. And when those losses start to accumulate, you're going to see the public markets for technology shut down again.
Q: But the public markets aren't the only option. Google bought 27 companies just in the last quarter.
Parker: Google bought 27 companies last quarter and a lot of them are talent acquisitions, in some cases paying $1 million an engineer. That can't last forever. There's way more startups getting founded now than there are companies than Google and Facebook want to buy.