The Hype Cycle in Silicon Valley

A lot of the money sloshing around in the valley was operating when there were low interest rates, says Julian Zelizer. Investors will buy into rounds with or throw as much money as possible at rounds to try to inflate the valuation and also get a better deal, writes Zelizer. They'll keep the money within the tight insular network and get it outside if it will make everyone in thetight insular network richer., he adds.