Another great article by NYT’s Evelyn Rusli and Ben Protess:
“Wall Street, as always, is going where the money is — and right now that is Silicon Valley. The latest Internet boom means there are more newly minted millionaires, and even billionaires, than at any time since the technology bubble a decade ago.”
And one more quote for the road:
“Financial firms are salivating over the wealth being created. Facebook is readying an initial public offering that will most likely value it near $100 billion. Employees and directors at Zynga own more than a third of the online game company, which went public in December at $7 billion. The list of prospects is long: Groupon is worth $12.2 billion; LinkedIn, $6.8 billion; and Pandora, $1.9 billion.”
Sell a company and Wall Street will start knocking on your door. They might even have some tickets to a show or exclusive access to Tesla’s factory to reel you in.
Should any of us be surprised? The fees generated by managing multiple multi-million dollar accounts adds up. And with Facebook’s impending IPO, there’s going to be a lot of new money flooding the Bay Area.
The question is whether it’s going to last. Is Silicon Valley the new nexus for wealth creation, or is it about to be hammered hard by the markets? We’re about to find out.
Image courtesy of Flickr, Bea Ackles