Unlikely, the issue from subprime was that the advent of CDO changed the risk model of the underlying asset. This allowed CDOs to the classified as Triple A whi

Unlikely, the issue from subprime was that the advent of CDO changed the risk model of the underlying asset. This allowed CDOs to the classified as Triple A which were not triple a worthy. The problem was not the risk, but that the risk was not communicated because it was largely unknown and that the system incentivized rating agencies to exaggerate credit ratings. Everyone in vc knows the risks and fully communicates the risk, almost anyone can buy real estate on 20x leverage (5% down) very few people can buy private tech sector stock on 20x leverage. When 60% of the population holds the vast majority of their net worth in tech sector stock at 20x leverage there may be larger issues, the risk taking culture in tech is very appropriate because they can bring large improvements to the lives of millions, your house is not likely to be 100 times more productive in the next 5 years. Thus taking huge risks on housing is inappropriate where as it's very appropriate in tech R&D.