Some industries move ahead of the broader economic cycle (housing is often used as an example - when time on market in the US exceeds 9 months on average, a recession will usually follow) and some lag behind that cycle or invert the cycle completely (liquidation lawyers, I'm looking at you).
'Tech' is fairly broad, and also (increasingly) linked to other industries. I'd hate to be selling enterprise software to property developers right now, but love to be a start-up connecting companies facing administration with experts to turn them around.
So is it common to have a tech boom (I'll get to bubble later) coming out of a recession, leading the way? Yes. Recessions force businesses and consumers to improve efficiencies. They are also times when large corporates 'trim the fat', which often leads to talented people being out of work. Talented people (starting their own business, or applying their talent to aforementioned efficiency demands) create opportunities and value - necessity is the mother of invention. I'm chasing sources now, but can point to businesses like HP and Cisco, and even those that came out of the 70s recession (MS and Apple) as having benefited from the recessionary mindset.
Does that means it's common to have a Bubble? Probably not. People are looking for efficiencies, but they don't necessarily have a lot of money to throw at the solutions - and a lot of money is what creates a bubble.
Does the rise of the VC over the past 15 years means that liquidity for investment during a recession now exists and we have a bubble? I think it's more likely that what we're seeing is a growth period, heading into a boom, and while some companies may prove to be over-priced it's not an industry bubble.
'Tech' is fairly broad, and also (increasingly) linked to other industries. I'd hate to be selling enterprise software to property developers right now, but love to be a start-up connecting companies facing administration with experts to turn them around.
So is it common to have a tech boom (I'll get to bubble later) coming out of a recession, leading the way? Yes. Recessions force businesses and consumers to improve efficiencies. They are also times when large corporates 'trim the fat', which often leads to talented people being out of work. Talented people (starting their own business, or applying their talent to aforementioned efficiency demands) create opportunities and value - necessity is the mother of invention. I'm chasing sources now, but can point to businesses like HP and Cisco, and even those that came out of the 70s recession (MS and Apple) as having benefited from the recessionary mindset.
Does that means it's common to have a Bubble? Probably not. People are looking for efficiencies, but they don't necessarily have a lot of money to throw at the solutions - and a lot of money is what creates a bubble.
Does the rise of the VC over the past 15 years means that liquidity for investment during a recession now exists and we have a bubble? I think it's more likely that what we're seeing is a growth period, heading into a boom, and while some companies may prove to be over-priced it's not an industry bubble.