Here's Why A Tech Bubble Is More A Reality Now Than Previously Thought

With private tech companies commanding record valuations and public tech companies trading at life-time highs, some in the investors community are convinced that we are in another tech bubble. Roger McNamee, Elevation Partners co-founder, was on CNBC Wednesday to discuss why the valuations of tech companies are suggesting that we are in a bubble. Unicorns McNamee was asked why he thinks it's ‘unquestionable' that we are in a tech bubble. He replied, Yeah, but I also don't think it's that uncommon or that big a deal for public market investors, when the private market gets out of control the way it is. We have this notion out here in the valley now of unicorns which is this idea of billion dollar private companies which if you think about it are brand new concept in the investment market." "I mean, there are really 100 of them now and they may all get public, but I think the more likely outcome is that something will happen along the way and the public market will perhaps be less enthusiastic about many of these companies than the venture capitalists out here are." The Fear Is Gone McNamee continued, "Silicon Valley is a very passionate place and what's cool is there's a lot of really great work being done now, lot of very exciting companies. But the fear is gone and Bill Gurley at Benchmark [General Partners] I think has been way out in front in making that point and fear is, as we know in the public market, it's a really important component of any bull market, you need to climb the wall of worry." Start-Ups Can Be Stopped "And right now there's this notion that start-ups can do anything and really can't be stopped.And that second point, I think the first point is true I really think they can do just about anything, but the second point isn't true," McNamee concluded.