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In other words you're saying that a bubble might only affect new companies spawned by that bubble. That wasn't true in the late 90's though -- just look at the
by phil 16y ago
In other words you're saying that a bubble might only affect new companies spawned by that bubble. That wasn't true in the late 90's though -- just look at the telecoms. Many of them had substantial trading histories, but they also saw big runups in their valuations followed by big drops in the early 2000s.
Also, the author talks about this in the first paragraph of his post:
Similarly, in recent high profile private financing rounds for private technology companies with valuations over $1B, the valuation multiples were at or below corresponding multiples for publicly traded companies such as Google.
- adestefan 16y agoThe bubble affects the companies that are trying to get a piece of the bubble. The runups in the telecom industry was due to them moving into laying fiber optics spurred in large part by Global Crossing flying high.
- phil 16y agoSure, but aren't Google, Salesforce, Amazon and others doing much the same thing by building/buying cloud computing platforms, social networking products, and so on? That's widening the companies from those Ben Horowitz named, so maybe valuation:value IS climbing for public companies that are trying to get in on the hot stuff of the day. That would certainly be an interesting argument, I'd love to see someone make it :)