The Flash answers the question above by pointing to the unprecedented deluge of venture capital going to seed-stage companies that even hint at profitability. This frenzy, of course, drives up valuations across the board. In a white-hot market, even the well-grounded VC is susceptible to wanton risk taking. This strategy can work while things are bullish; The Flash will be watching to see how things might shift as valuations cool.
The Flash also notes the increasing investor unease over the unresolved CEO situation at Twitter. Since the departure of Dick Costolo in June, the CEO seat has been vacant, leaving the social network company without a permanent head.
Check out these stories and more in this week’s edition of The Flash!
- What’s driving VC firms to take bigger risks (Wall Street Journal)
- Twitter is feeling pressure to name a CEO (Fortune)
- Lyft tries to think more locally (Bloomberg)
- Buy online without a credit card (Slate)
- He’s back: startup CEO who opted for fatherhood returns (Wall Street Journal)
- Security start-ups face closer scrutiny (NY Times)
- The dangers of mixing business and politics (Entrepreneur)