BEWARE THE NEXT BIG THING
One important factor has been a decade of near zero interest rates, leading to a mountain of excitable investor cash eager to find “the next big thing”.Fed by gushing headlines about soaring valuations, this frenzy has led to a “get big fast” approach to business development, based on a race to build market share and a blind faith that overlooks or obscures key fundamentals such as revenue growth.
READ: Singapore start-ups should solve problems, not focus on achieving 'unicorn' triumphs, a commentaryOf course, overhyped investments are nothing particularly new. The Dutch had their own experience with the tulip craze back in the seventeenth century. But in the scenarios we see playing out today, technology has played a major role in fuelling the scope, speed and scale at which the hype spreads.
On top of this, firms were unable to establish barriers to entry, meaning other players were able to enter the market easily. Driven by a hyped-up frenzy of investor interest around bike sharing, many firms did exactly that.
Technology Technology Latest News, Technology Technology Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »