What the Bubble Got Right

Paul Graham’s essay What the Bubble Got Right identifies ten lasting trends that emerged during the Internet Bubble, despite the crash.

The Ten Lasting Trends

1. Retail VC: Taking companies public early isn’t inherently flawed
2. The Internet: The technology genuinely represents a major shift
3. Choices: The Internet removes bottlenecks controlling consumer access
4. Youth: Young founders can possess visionary thinking essential for CEOs
5. Informality: Casual dress signals that substance counts more than presentation
6. Nerds: Technical expertise becomes increasingly valuable
7. Options: Stock options effectively incentivize employees
8. Startups: Purpose-built startups create accountability faster than bureaucratic development
9. California: The Bay Area’s progressive culture attracts entrepreneurial talent
10. Productivity: Technology multiplies productivity variations

The Overarching Theme

Good ideas increasingly matter more than connections or credentials.

My Takeaway

The bubble was wrong about valuations but right about the underlying trends. The revolution was real.

What from the bubble era do you think was right? I’d love to hear at persdre@gmail.com.