Chris Dixon discusses rising startup valuations & potential startup bubble

http://namesake.com/conversation/cd8c4262-559c-11e0-bb51-12313f014066

by mviamari • 15 years ago

17 13 15 years ago

dlg• 15 years ago

The 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• 15 years ago

No bubble, it's a super bubble!

scottieh• 15 years ago

Nice. So basically he's saying that it's too expensive for an investor as of late.

mcoliver4• 15 years ago

Not too expensive. Just that the prices are in line with real value so the ability to gain a high return is minimized.

omomyid• 15 years ago

not actually...later in the conversation he states (paraphrase) that he's not seeing as many deals/co's of the type that they like to invest in

mcoliver4• 15 years ago

Incredible discussion going on right now with huge players in the startup world. Kedrosky, Dolginow, Nivi, Hotchkiss, Dave Morin, etc... WOW

mviamari• 15 years ago

I'm intrigued by the idea that you can have super high startup valuations and NOT have a startup bubble.

skotzko• 15 years ago

Epic convo with some major players. If you're in strtupland or a fan of it, you need to go listen in now.

stevedc3• 15 years ago

Namesake is awesome - like the best of Twitter + Quora

mcoliver4• 15 years ago

that was a pretty incredible conversation. Wow.

revorad• 15 years ago

Maybe I'm being cynical but to me it just looks like IRC which keeps crashing my browser.

gte910h• 15 years ago

I 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.

mcoliver4• 15 years ago

Forward 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.

Chris Dixon discusses rising startup valuations & potential startup bubble

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