This feels like 1999: Global start-up funding frenzy fuels fears of a bubble
Summary
"Private financings could soften significantly, as happened in 2001 and 2009," Sequoia Capital told portfolio company founders and CEOs in a memo reminiscent of its "R.I.P. In the past five years, the Nasdaq has nearly tripled, with the market values of several large-cap tech stocks, including Amazon, Google and Facebook, crossing the $1 trillion mark. U.S. payments processor Stripe was valued at a whopping $95 billion in March, illustrating the growing trend of start-ups staying private for longer. Tiger Global, a hedge fund known for its bets on pre-IPO tech companies, has gained a much larger presence in venture capital lately. A low interest rate environment has led to a huge amount of "dry powder" being deployed in risky venture bets, she added.