Web 2.0 Astronauts Must Return to Earth.

Today, Facebook announced they were raising $25 million dollars from a consortium of VC investors. Bambi Francisco announced on her Net Sense (www.cbsmarketwatch.com) column a valuation of $550 Million for Facebook. Was it not long ago when infamous Web 1.0 properties were sold or IPOd at ridiculous valuations? Business models were written on bar napkins after lengthy visits to the can for copious lines of devil's dandruff. No one wonder the valuations were so sky high -- the Webfool got the idea from a message etched on the bathroom wall "I see a sock," he murmured to himself. "I...I...see a spot-eyed pet," he whispered sotto voce in between rubbing some residue on his gums. "I...I...EUREKA...I see a Sock Puppet Animal...and legions of Herman Miller Aeron chairs marching up Fifth Avenue and across 23rd street." I remember those heady days in NY's Silicon Alley - there were companies like Ego Media, Razorfish, ModemMedia, Orb Digital. Geocities (pre MySpace and Blogosphere) was sold for Billions. Henry Blodgett said "P/E ratios and Valuations don't matter." Now, Facebook, having rejected $750 million because they felt they were worth $2 Billion...WHY? This is unremitting hubris the size of the Titantic and the Tower of Babel. Better watch out for the Iceberg. I am very comfortable in my Herman Miller Aeron. It's all I have left from my stock options that vested after the implosion. My arse, at least, is vested.

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