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Thursday July 24, 2014

Crain’s David Warns of NY Tech Bubble

Gilt Groupe

Gilt Groupe (Photo credit: Wikipedia)

Crain’s NY Business columist Greg David is warning of the possibility of an emerging NY tech bubble. David cited a Wall Street Journal piece that announced Gilt Groupe‘s removal of Kevin Ryan as CEO. The company stated that they were looking for someone who could make their site profitable. Earlier this year, Ryan was labeled as “the King of Silicon Alley,” and now it seems something has caused this title to fall out.

David compared Gilt Groupe’s current predicament to the fate that has befallen Groupon, whose stock is below $3 a share following disappointing revenues. David also mentioned the severe decline in venture capital investments in NY companies. There was a 46% decline in the third quarter compared to a year ago.

Crain’s NY Business