The 2010s have been the decade of the venture capitalists – again. Just like in the 1990s Silicon Valley has minted new millionaires and billionaires on a monthly basis. Many of these entrepreneurs have created viable businesses that have changed our lives, but others have been selling snake oil to unsuspecting investors (Looking at you Adam Neumann). As the total money invested in private equity has surpassed the total assets of hedge funds for the first time in 2019, according to Preqin, it is worthwhile thinking about the possibility of a private equity (PE) or venture cap (VC) bubble. I am not sure there is a bubble and I am not predicting a correction or a crash, but as the chart below shows, the amount invested in venture cap deals has grown by 180% over the last decade.
How to create a VC bubble in five easy steps
How to create a VC bubble in five easy steps
How to create a VC bubble in five easy steps
The 2010s have been the decade of the venture capitalists – again. Just like in the 1990s Silicon Valley has minted new millionaires and billionaires on a monthly basis. Many of these entrepreneurs have created viable businesses that have changed our lives, but others have been selling snake oil to unsuspecting investors (Looking at you Adam Neumann). As the total money invested in private equity has surpassed the total assets of hedge funds for the first time in 2019, according to Preqin, it is worthwhile thinking about the possibility of a private equity (PE) or venture cap (VC) bubble. I am not sure there is a bubble and I am not predicting a correction or a crash, but as the chart below shows, the amount invested in venture cap deals has grown by 180% over the last decade.