

Chris Dixon discusses rising startup valuations & potential startup bubble - mviamari
http://namesake.com/conversation/cd8c4262-559c-11e0-bb51-12313f014066

======
gte910h
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.

~~~
mcoliver
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.

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

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

------
dlg
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
No bubble, it's a super bubble!

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

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

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

------
stevedc3
Namesake is awesome - like the best of Twitter + Quora

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

