It scars me when I see social networking sites like LinkedIn, Facebook and now Twitter raising large (read huge) follow on rounds. Twitter Raising New Cash At $250 Million Valuation

If you raise VC money, you have to have an exit at some point. If you’re raising this kind of money it makes it really hard to get acquired, which leaves an IPO as the only viable option. In this market, with the banks in the situation they are in, who’s going to back a public offering.

Either these guys are going to have to figure out something or some people are going to loose an awful lot of money.