In Silicon Valley, $3 billion now price for start-ups

Valuations for privately held startups are rising to ridiculous levels in Silicon Valley. Nest Systems, a developer of a smart home thermostat, just agreed to be acquired for $3.2 billion, the latest of $3 billion offers. But Nest, at least, sells an interesting product, derives revenue and has Apple alums who worked on the iPod as its co-founders.