Originally posted on Gigaom:
There’s a lot of talk in Silicon Valley about a bubble in VC investing right now, with the $1 billion purchase of Instagram by Facebook(s fb) for some people being emblematic of high valuations for social apps without a clear revenue stream or inherently altruistic purpose. So many are wondering: could the tech industry shift toward more investment in startups that cure cancer or find solutions for clean energy? The answer depends on whom you ask.
A panel of investors and startup founders speaking at Venture Shift on Thursday debated whether there really is a bubble in venture capital right now, and whether the talent and money in the startup area is directed at solving the most important problems.
Marcus Ogawa, a managing partner at Quest, said Instagram’s sale will absolutely inspire a proliferation of photo and video-sharing apps, perhaps more than most customers really need.