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Chris Dixon discusses rising startup valuations & potential startup bubble
- dlg 16y agoThe scenario they're talking about with the SEC regulating secondary markets is the most plausible theory of and unwing I've heard yet.
- Thomas_Kincaid 16y agoNo bubble, it's a super bubble!
- scottieh 16y agoNice. So basically he's saying that it's too expensive for an investor as of late.
- mcoliver 16y agoIncredible discussion going on right now with huge players in the startup world. Kedrosky, Dolginow, Nivi, Hotchkiss, Dave Morin, etc... WOW
- mviamari 16y agoI'm intrigued by the idea that you can have super high startup valuations and NOT have a startup bubble.
- skotzko 16y agoEpic convo with some major players. If you're in strtupland or a fan of it, you need to go listen in now.
- stevedc3 16y agoNamesake is awesome - like the best of Twitter + Quora
- gte910h 16y agoI don't see why everyone assumes a bubble. I think it's just like real estate purchased for renting out: People know you can make money on it, people realize that, so invest in that knowing rental income can at least pay for the mortgage (in some markets). So all the low hanging fruit are gone as people are not afraid of investing in these companies. You have to go for less low hanging fruit and invest more to get your piece of the pie. The idea of a valuation of a private company is possibly also the issue. Who says a company's public market cap (which is what valuation is supposedly mirroring) has anything to do with what a private company sold part of itself for. I'd say in general, if X was the cost of 10% of a business, that's not saying you could actually buy it for 10X. You might actually have to pay 20X to buy the whole thing or perhaps only 5X.
- mcoliver 16y agoForward looking valuations are the most difficult. I think when people talk about a bubble they are speaking to the fact that people are being overzealous in the assumptions about how big / far the company will go.