Kleiner Perkins’ partner Mary Meeker suggested that the private markets are a bit bubbly right now.On stage at the All Things D conference, she said Kleiner has a $1 billion digital growth fund, and it didn’t invest a penny in the March quarter. The reason? “We couldn’t couldn’t get comfortable with valuations.”
In other words, valuations are too high.
Most people in the tech world shoot down any idea that we’re in a tech bubble. And one of their primary cases against the bubble is the reasonable valuations of public tech companies.
Meeker concedes that public tech companies are not in a bubble.
And she thinks this could eventually lead to the private market bubble bursting.
She says that the valuations in the private market are going to make it “difficult to go public.” The valuations make it “difficult to justify the goals.” The prices are going up and up. And the businesses are not keeping up.
So, when these companies start to look for public market exits, there’s a good chance the “private market will lose money.”