Here Is The Second Dot Com Bubble: Just Beyond The "Public" View

Tyler Durden's picture


While the world of speculative capital is focused intently on the Twitter and Facebook #Ref/0 fundamental valuations in the publicly-traded equity markets, as the WSJ illustrates, the real dot-com 2.0 bubble is occurring in the private markets. Today there are more than 30 companies in the US, Europe, and China that are valued at $1 billion or more by venture-captal firms and the club is becoming less exclusive as venture capitalists (in their ever growing speculative fervor) funnel large sums of capital into start-ups.


Click image for interactive and sortable WSJ infographic


Source: WSJ

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Fri, 01/24/2014 - 14:18 | 4363439 THECOMINGDEPRESSION

No bubble with FREE BITCOINS. I have been able to obtain 1/2 a bitcoin a week without using a penny. If you have a bitcoin wallet JOIN immediately for free:

Fri, 01/24/2014 - 14:21 | 4363446 moonman
moonman's picture

Does your aunt make $10k a week also?

Go away

Fri, 01/24/2014 - 14:24 | 4363461 THECOMINGDEPRESSION

Don't knock it here is my account dummy..for the last day of bitcoins

Fri, 01/24/2014 - 14:27 | 4363478 camaro68ss
camaro68ss's picture

I’m a construction contractor in San Francisco and I’ve done work for most of these companies. There buying up retail space like crazy in all the high rises and building them out. When this puppy goes POP, say good buy to the micro boom in the bay area.

Fri, 01/24/2014 - 14:29 | 4363489 maskone909
maskone909's picture

good opportunity to short the commercial realestate sector

Fri, 01/24/2014 - 14:35 | 4363524 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

How do you short these POS private companies? My puts on FB and NFLX are set.

Fri, 01/24/2014 - 14:39 | 4363541 camaro68ss
camaro68ss's picture

NFLX is a magical unicorn. It’s a bankers love child. That POS will never go done until it “does”

Fri, 01/24/2014 - 14:44 | 4363569 Cursive
Cursive's picture


Well said.  NFLX is a widowmaker until it <one day> succumbs to perdition's flames.

Fri, 01/24/2014 - 14:55 | 4363613 fonestar
fonestar's picture

My fair market value for FB, TWTR, NFLX, ZYNG are all $0.

Fri, 01/24/2014 - 15:41 | 4363807 GubbermintWorker
GubbermintWorker's picture

Is that in US Dollars or your precious Bitcoins?

Fri, 01/24/2014 - 15:45 | 4363837 fonestar
fonestar's picture

In dollar terms?  Infinite currency, and in Bitcoin?  Zero BTC.

Fri, 01/24/2014 - 16:00 | 4363897 kornholio
kornholio's picture

netflix fucking sucks, shitty movies with grainy video, this pos is gonna bust wide open

Fri, 01/24/2014 - 17:08 | 4364273 fonestar
fonestar's picture

Check out Project Free TV

Fri, 01/24/2014 - 16:42 | 4364124 Binko
Binko's picture

At least NFLX has paying customers. Lots and lots of them. Almost everybody I know has a NFLX account in their family.

Plenty of companies on this list that provide a free service. People will pay for movies and TV shows but they won't pay for randomly amusing internet services.

Fri, 01/24/2014 - 14:41 | 4363553 nuclearsquid
nuclearsquid's picture

how does a bubble in private valuations pop?  Sure some VC's might log bad performance a few years from now, but people still bathe this asset class in money.  Where else would they put it, hedge funds?!

Also, most of the major rounds have 5-10 major shops in there, spreading the risk and doing each other favors by bidding up round valuations.  There IS NO EFFICIENT MARKET that sets where these rounds get valued.



Fri, 01/24/2014 - 16:00 | 4363894 Occident Mortal
Occident Mortal's picture

Did you see last years IPO's?

Facebook went out at $100bn!

A hundred billion!

These valuations are merely a bet on QE fantasy markets and that there are even more dipshits out there willing to pay any price for some brand they spend faaar to much time thinking about.

Fri, 01/24/2014 - 14:43 | 4363559 disabledvet
disabledvet's picture

you've been shorting Netflix? I mean "at best this trade is one day old." If that. Facebook is up from below 20 to over less than a year.

There are many things I don't like about Facebook in the moral sense of the term...but that software platform isn't one of them

Isn't it odd that with the market getting crushed here Tesla and Twitter are "mere market performers" if not "slightly better"?

Fri, 01/24/2014 - 15:18 | 4363717 James_Cole
James_Cole's picture

you've been shorting Netflix? I mean "at best this trade is one day old." If that. Facebook is up from below 20 to over less than a year.

Beartraps, they'll eventually take a dive I'm sure and it'll all be 'obvious' at that point but calling the exact right time.. good luck 'cause if you call it wrong....

Fri, 01/24/2014 - 14:39 | 4363537 Rearranging Dec...
Rearranging Deckchairs's picture

Reminds me of esteemed Zero Hedge Contributor Reggie Middleton calling PEI the short of the year for 2012. How'd that work out for ya? 

Timing the short is the beotch of the thing! 


Fri, 01/24/2014 - 14:58 | 4363629 Common_Cents22
Common_Cents22's picture

has Reggie been posting?


in these irrational markets, sharp analysis is one thing, but traditional sleuthing can be thrown out the window with dislocated markets.



Fri, 01/24/2014 - 14:45 | 4363568 NotApplicable
NotApplicable's picture

Good opportunity to get fucked by the Fed, you mean.

Shorting is a market-based activity. Today's CRE is NOT.

Fri, 01/24/2014 - 14:51 | 4363590 FiatFapper
FiatFapper's picture

"There buying up retail space..."


Fri, 01/24/2014 - 15:04 | 4363663 NoDebt
NoDebt's picture

Dead giveaway he's under 30.  We've got a pretty smart kid (mid 20s) start working with us a few months ago.  Good school, professional backround.  Still can't always tell the difference between THEY'RE, THEIR and THERE.  I had to pull him aside and tell him to brush up on his grammar.  Young people might be cool with that, but older people aren't.


Fri, 01/24/2014 - 17:05 | 4364226 boogerbently
boogerbently's picture

Those classes were replaced with "Womens Studies" and altered versions of "history" of how the heterosexual white male enslaved everybody.

They don't know they're brainwashed, they don't know they're undereducated.


Fri, 01/24/2014 - 15:18 | 4363724 malek
malek's picture

We'll at least in "the bay area" there has been a glut of office space for years now. In San Mateo / Foster City the SPACE AVAILABLE signs are bigger than those of the companies still leasing there.

Fri, 01/24/2014 - 14:55 | 4363551 AlaricBalth
AlaricBalth's picture
Domain Name:FREEBITCO.IN Created On:10-Oct-2013 19:29:11 UTC Last Updated On:10-Dec-2013 19:20:36 UTC Expiration Date:10-Oct-2014 19:29:11 UTCRegistrant Street1:Suite 102, Ground Floor Registrant Street2:Blake Building, Corner Eyre & Houston Str Registrant Street3: Registrant City:Belize City Registrant State/Province:Belize Registrant Postal Code:0 Registrant Country:BZ Registrant Phone:+223.2839 Registrant Phone Ext.: Registrant FAX: Registrant FAX Ext.: Registrant
Interglobal LimitedSuite 102, Blake Building, Corner Eyre & Hutson Street
Belize City, Belize

Belize Formation Services Limited 
Suite 102, Blake Building, Corner Eyre & Hutson Street
Belize City, Belize
Telephone: (501) 223-2839 
Fax: (501) 223-3004 E-mail: 
Host of the[Host IP :
IP Address: Houston Tx. - Hewitt Dr. - behind Scarborough High School.  About a 2000 sq/ft tract house.  Ill have the name and owner in a few minutes.
So please stop posting commercial links
Fri, 01/24/2014 - 15:06 | 4363666 Professorlocknload
Professorlocknload's picture

++ Alaric. Quality inquiry!   Pop goes the scammer!

Fri, 01/24/2014 - 20:44 | 4365041 SAT 800
SAT 800's picture

Nice work.

Fri, 01/24/2014 - 14:56 | 4363623 Bangin7GramRocks
Bangin7GramRocks's picture

My Jingdong is thick and 10 inches, but I wouldn't say it was worth $7.3 Billion!

Fri, 01/24/2014 - 14:38 | 4363543 codecode
codecode's picture

If you just have to click on his link, leave off the referrel code i.e. "?r=224682"

Fri, 01/24/2014 - 14:21 | 4363444 El Vaquero
El Vaquero's picture

Many of those names show a lack of creativity.  "Trendy Group" and "Good Technology?"  Really?  WTF?  One would hope that it was some serious socially inept eggheads responsible for those names, rather than just idiots in general. 

Fri, 01/24/2014 - 14:35 | 4363523 frankthomaswhite59
frankthomaswhite59's picture

that is exactly what I thought

Fri, 01/24/2014 - 14:38 | 4363538 El Vaquero
El Vaquero's picture

Don't get me wrong, having a catchy name is fluff when you get down to it, but sheep like fluff, and if you want to fleece them, giving them fluff is not a bad idea.  If you cannot give them fluff, it is much more necessary to have a solid product. 

Fri, 01/24/2014 - 14:41 | 4363555 camaro68ss
camaro68ss's picture

you know how you get fluff? you put in"I" in the front. Igood technowledge. Instant money maker

Fri, 01/24/2014 - 14:36 | 4363531 camaro68ss
camaro68ss's picture

there all in there mid 20's early 30's and have no idea WTF is going on around them. Its goin to suck from them to learn what hardship is.

Fri, 01/24/2014 - 14:45 | 4363571 Urban Redneck
Urban Redneck's picture

The names lack creativity but the creativity of the MS-Excel BS is in overdrive...

The algo and pomo driven, over hyped, rigged ponzi market valuation of US S&P500 equities is 8x free cash flow, for the ChiCom frauds it is 4.5x free cash flow (10yr averages, and since the goal of PE is to flip the bitch to a bigger sucker on the listed market, these stocks should be valued at DISCOUNT to their listed peers).

If I valued my holdings the way these companies are- I would be worth than those 85 clowns who supposedly own half the world (and so would anyone else with positive equity, tangible net worth and free cash flow).

Fri, 01/24/2014 - 19:13 | 4364772 MachineMan
MachineMan's picture

"Good Technology" is today's BlackBerry.

Fri, 01/24/2014 - 14:22 | 4363455 THECOMINGDEPRESSION

There's going to be a trillion bubbles soon

Fri, 01/24/2014 - 14:32 | 4363507 brewing
brewing's picture


Fri, 01/24/2014 - 14:48 | 4363578 superflex
superflex's picture


Let me put this nicely.

Suck my balls you inbred piece of shit!

My daughter's cat shits out more impressive fecal matter than anything you provide here.

Fri, 01/24/2014 - 14:21 | 4363456 ParkAveFlasher
ParkAveFlasher's picture

Bear trap, bitchez!

Fri, 01/24/2014 - 14:24 | 4363465 El Vaquero
Fri, 01/24/2014 - 15:09 | 4363684 The Wisp
The Wisp's picture

notice the bear walks away after getting hit, there one tough Bitch

Fri, 01/24/2014 - 14:34 | 4363517 max2205
max2205's picture

First 1% spy down day and everyone is saying....and poof it's gone


Wait till the bull trap folks

Fri, 01/24/2014 - 14:24 | 4363459 midtowng
midtowng's picture

Need to show a graph on their profits (or lack of).

Fri, 01/24/2014 - 14:48 | 4363579 NotApplicable
NotApplicable's picture

More specifically, their NSA connectivity. Profits don't mean dick in comparison.

Profits are sooooo last century.

Fri, 01/24/2014 - 14:24 | 4363463 NEOSERF
NEOSERF's picture

Add to this.  Lost $17M last year, $25M this year with no plan in sight to be profitable...plan seems to be to sell this to some larger and double down on profits...silly.

Fri, 01/24/2014 - 15:02 | 4363647 Common_Cents22
Common_Cents22's picture just went public, they are cashing out at least partially.


I'd definitely take my private tech co public or sell out to a bigger fish.   

Fri, 01/24/2014 - 14:26 | 4363474 maskone909
maskone909's picture

wow snapchat 2 bill?  tell me what is so different from snap chat and using your phone to send messages?  2 billionWTFBBQ!?!?!?  this will not end well


Fri, 01/24/2014 - 14:35 | 4363525 Rearranging Dec...
Rearranging Deckchairs's picture

I'm confused. I thought the only utility of snapchat was that it auto deleted naked selfies so the sexting Weiner politicians could deludedly feel they were protected from scandal for thier antics. 

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