Wednesday, March 25, 2015
Savvy observers are worried that Silicon Valley is in yet another bubble that threatens to burst. How after the last wrenching shake-out is this possible? Didn't anybody learn? It shows again that so-called savvy investors are gullible and buy into hype. Where is PR? There is plenty of flacking from company founders who are in love with their products and starry-eyed about the revenue possibilities. Communications professionals should be a brake on the enthusiasm and point to economic reality. First of all, are these companies making money and if so, how much? Are they justified having billion-dollar valuations? It is hard for PR to slow investors because PR is typically the rump-end of the process. But they do have influence in the tone of press releases and what companies say about themselves. They should be careful to hold tightly to facts and moderate speculation. They should remind founders that unreal estimates of worth can damage them badly in the future and it is the tortoise that wins the race ultimately. Practitioners won't be thanked for their caution but they can live with themselves for having done it.