Early this year there was a lot of talking regarding such companies as Uber, Airbnb, and Snapchat going public. A lot of market experts and observers had been expecting these currently largest startups to go for an IPO. However, the bitter reality is that the year is drawing to a close and nothing has changed yet.
According to the data from Wall Street Journal’s “Billion Startup Club”, Uber is valued at $50 bn, Airbnb – $25.5 bn, and Snapchat messenger is worth $16 bn.
Any metrics show that such preliminary evaluations of IPO assume that the expectations here are too high and it will probably fail to match the hassle made around these companies. The final evaluation may cause a great disappointment among investors.
However, among those who are being sceptic there is an expert of technology venture investment who urges not to be afraid of the bubble. Hemant Taneja from General Catalyst Partners fund believes that all the fears regarding the investment bubble cannot but influence the sentiment and the willingness to work that are dominating the Silicon Valley.
Taneja, the Managing Director of General Catalyst Partners, says that the whole ecosystem of venture investment, of both seed investment and business angels and venture capitalists, has radically changed lately.
The investor reckons that some companies are truly showing growth by a few hundred percent a year and these are not only software development companies, which overall trade within a high-margin market.
Hemant’s opinion is worth taking seriously, since he invested in several of the aforementioned startups, Airbnb and Snapchat in particular. Unless, of course, this is the way he is protecting his own investments.