VCs and the "me too zone"

Brad Feld (Director, Mobius Venture Capital) writes about trend-following in the VC industry:

Every emerging market hits a point where there is a mad rush of early stage entrepreneurs and VCs piling in. In some cases, it drives rapid innovation; in most it creates near term over-saturation, lots of irrational financings, and plenty of carnage as the laws of Darwin play out over the next couple of years.

I'm afraid we just hit that point with RSS / Blogging. The meme has spread broadly -- which is great. Now we'll watch all gods children pile in to try to get something up and running in this "space" .... It's as if the whole world wakes up one day and starts working on the same types of things.

There is a huge adoption (and innovation) curve ahead of everyone who is doing stuff with RSS / blogging -- and there are plenty of good investments left to make and companies to create -- but the noise and clutter is about to get really loud.

The herding instinct is strong. Brad's right, this one will be fun to watch.