2.) Low burnrate. Not quite, he's talking about a particular mentality in that the goal was to blow as much money as possible and get enough revenue to IPO, at

2.) Low burnrate. Not quite, he's talking about a particular mentality in that the goal was to blow as much money as possible and get enough revenue to IPO, at which point early investors cash out, profiting off public investment in something worthless. 2.) Low burnrate has nothing to do with overvaluation of companies. But overvaluation of individual companies does not mean there is a bubble, either. It just means a company is overvalued. In the case of startups, "a Bull Market for private investors" is a lot more accurate than "Bubble" but a lot less sensational and scary because bulls don't pop they just turn into bears. So the question you have to ask, and only ask is, will the company ever realistically achieve that valuation, regardless of burnrate, regardless of past performance, in the current and future macroeconomic conditions. As an individual investor, yes. But generally speaking the reason it's worth asking whether there is a bubble (and not just whether a particular company is overvalued) is because oversight and regulation can be effective at preventing the sort of stock market abuse that led to the two recent crashes. Overvaluation in general, though, is simply one of the risks of investment.