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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 - 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. 

Fri, 01/24/2014 - 14:55 | 4363612 maskone909
maskone909's picture

lol again, why not just use ur phone and delete. 

Fri, 01/24/2014 - 15:10 | 4363681 Matt
Matt's picture

How do you delete pictures from the recipient's phone, when you are the sender?

Fri, 01/24/2014 - 15:14 | 4363702 Rearranging Dec...
Rearranging Deckchairs's picture

Well no I thought it auto-deleted from the recipients phone which is beyond my own capabilities? just not from the NSA servers. !


Fri, 01/24/2014 - 15:02 | 4363650 Common_Cents22
Common_Cents22's picture

how does snapchat propose to monetize?  show a 1 second commercial?

Fri, 01/24/2014 - 14:27 | 4363475 mayhem_korner
mayhem_korner's picture



As long as it's in view of the algos, I can sleep at night.

[Edit: I want to hear a CNBS hack say he's "long JingDong".]

Fri, 01/24/2014 - 14:32 | 4363505 MsCreant
MsCreant's picture


Why for silver get monkey hammer?

Fri, 01/24/2014 - 14:41 | 4363550 El Hosel
El Hosel's picture


The world of Silver is Flat....  and back at 2010 levels.

Fri, 01/24/2014 - 15:04 | 4363655 MsCreant
MsCreant's picture

Seems the same monkey with the hammer is doing downvotes in the comment section. 

I commented because usually gold moves with it and it did not this time.

Fri, 01/24/2014 - 15:11 | 4363691 Matt
Matt's picture

My theory is that someone is using down arrows as a means of tracking which posts they have already read, so when they come back they can just read the ones without down arrows. Maybe even an automated script.

Fri, 01/24/2014 - 14:32 | 4363508 Spungo
Spungo's picture

"Does your aunt make $10k a week also?"
She's a cocaine dealer, so yes. Yes she does.

Fri, 01/24/2014 - 14:50 | 4363586 Cursive
Cursive's picture


Hot in the 80's, still hot in the Teenies.

P.S.  Hope everything is good down your way.

Fri, 01/24/2014 - 15:06 | 4363668 MsCreant
MsCreant's picture

You better be good to me, that's how it's got to be now, I don't have no use for what you loosely call the truth...

She had some legs man, agree!

All is very good, thanks for asking! Glad to see you posting too.

I am around daily.

Fri, 01/24/2014 - 15:28 | 4363757 Cursive
Cursive's picture


I'm around all day, too, just slowed down on the posting.  We got snow down here in Louisiana, so it's been a winter wonderland today.  We get snow flurries about once every 5 years, but it only sticks once every 10-20 years.  Just finished off a bowl of snow ice cream....

Fri, 01/24/2014 - 14:32 | 4363509 Skateboarder
Skateboarder's picture

With hip engineer slaves who think they are doing the world a great, heaping favor by 'disrupting' this or that or whatever they think they are doing. It's hard to take seriously complete and utter mediocrity that is lauded as excellence.

Fri, 01/24/2014 - 15:04 | 4363659 Common_Cents22
Common_Cents22's picture

what? you don't like distruption of the 4 second photo sharing space??   LOL   Like its so important!

Fri, 01/24/2014 - 14:33 | 4363511 Rearranging Dec...
Rearranging Deckchairs's picture

Ruh Oh - how are I banks  gonna fleece the general public again with overinflated Web 2.0 IPO's if they can't keep the stock market rally going? 


Fri, 01/24/2014 - 14:39 | 4363540 Johnny Cocknballs
Johnny Cocknballs's picture

I just recently graduated from Pandora to Spotify.  It is a fantastic service for people such as myself, who enjoy nothing more at the end of a long week than sipping some wine, smoking some grass, and discovering some new music.

It also seems to be, in relative terms, even relative to Facebook and Twitter, the most massively overvalued thing in the galaxy.

I think Dropbox has some real utility and room for growth before the amount of assholes that would actually use it reaches saturation point.



and now for something completely different - a Justin Bieber / Slipknot mashup. 

Justin Bieber vs. Slipknot - Psychosocial Baby



Fri, 01/24/2014 - 15:08 | 4363674 RafterManFMJ
RafterManFMJ's picture

After the EMP / Class X+ solar flare (occurring about 3 hours apart), I'm going to short all these BS stocks, then buy about 100000000 rolls of Bitcoins!

Fri, 01/24/2014 - 17:04 | 4364228 Blano
Blano's picture

I used Dropbox once to receive a does that make it worth 10 billion? Just wondering.

I'm too old for this technological/social media crap.

Fri, 01/24/2014 - 18:20 | 4364614 syntaxterror
syntaxterror's picture

Dropbox? $10 billion? Are you sheep that fucking stupid? Really?

You get 16GB for free on google drive and they have the exact same file sharing UI as dropbox. In fact, it's a complete and total ripoff as only google can get away with, because they're the "leaders in innovation" and they "do no evil" as they like to think. Regardless, you can have the dropbox IPO all to yourselves.


Fri, 01/24/2014 - 14:41 | 4363546 Rockfish
Rockfish's picture

Spcace X - the same as Dropbox and Spotify? 

Fri, 01/24/2014 - 14:57 | 4363624 Rockfish
Rockfish's picture

Im sorry my post was ambiguous at best. NO SpaceX is Not like the majority on thet list.   

Fri, 01/24/2014 - 18:21 | 4364628 syntaxterror
syntaxterror's picture

Right, the outer space joyride sector is justing "taking off" so to speak.

Fri, 01/24/2014 - 14:46 | 4363570 q99x2
q99x2's picture

Obamacare is in a bubble.

Fri, 01/24/2014 - 14:51 | 4363600 FiatFapper
FiatFapper's picture

Perhaps I'm too old, but what the fuck is SnapChat all about?

Fri, 01/24/2014 - 14:55 | 4363609 css1971
css1971's picture

It's the NSA's introductory programme for kids.

Fri, 01/24/2014 - 14:55 | 4363618 FiatFapper
FiatFapper's picture

You maybe right as their wiki page states their demographic is 13-20yo.

Fri, 01/24/2014 - 19:20 | 4364789 realitybiter
realitybiter's picture



self serve surveillance


gateway sss

Fri, 01/24/2014 - 14:57 | 4363620 El Vaquero
El Vaquero's picture

I don't know either, but in my case it comes from not giving a shit. 

Fri, 01/24/2014 - 14:52 | 4363605 FiatFapper
FiatFapper's picture

From the list, it seems we needs to assimilate with our Chinese Over Lords and learn their language ASAP.

Fri, 01/24/2014 - 14:55 | 4363610 FiatFapper
FiatFapper's picture

Also, I don't get why Spotify has gained traction when GrooveShark is far supeior; Google have removed GrooveShark from their index at the behest of their music copyright masters trying to thin the market.

Fri, 01/24/2014 - 15:08 | 4363673 bigrooster
bigrooster's picture

This is the everything bubble 1.0.



real estate



Fri, 01/24/2014 - 15:13 | 4363698 Max Cynical
Max Cynical's picture

Most of these companies don't have a chance of ever actually making profits that approach the valuations let alone the equity funding.

How may car rides will it take for Uber to surpass $3.8B in after tax profits?

How many stays are necessary for Airbnb to net out $2.5B?

Snapchat will never generate a profit and it's valued at $2B..they should ahve taken the $3B and walked away.

These valuations are so off the charts.

Fri, 01/24/2014 - 15:35 | 4363788 FiatFapper
FiatFapper's picture

You're missing the underlying theme; most of these companies are data mining - that's their true valuation...for whom?

I read about a guy who coded an app where you say 'who is' whilst wearing your Google Glasses and it took a picture and searched the database and returned their name...that has huge potential...but for which side?

Fri, 01/24/2014 - 15:40 | 4363800 pragmatic hobo
pragmatic hobo's picture

and which database is searching?

Fri, 01/24/2014 - 15:51 | 4363856 FiatFapper
FiatFapper's picture

From memory, he did it at a google code convention and i think it was a dummy data-set with a few selective pics to extol the virtues of his face-recognition code.

Howver, it's easy to extrapolate the link between this hardware and data-mining; once all the minions start wearing these Glasses then it makes the alphabet agaencies task so much easier.

It was also interesting to see GoPro manufactuere on the list - g'ments are wetting themselves over that one, namely HD self content.

Fri, 01/24/2014 - 16:05 | 4363911 falak pema
falak pema's picture

For those at the Hedge who listen to the sounds of other trumpets,  here is a old angle that corresponds to my vision of things à la 1980, antideluvial in current hubris; now being resuscitated like a boomerang coming back to sender : 

The Myth of Maximizing Shareholder Value | naked capitalism

The key here is what we learned in those old days of pre NEW "supply side" 1980 capitalist age : MAximising shareholder value was the residual yardstick for measuring corporate performance not the cardinal one.

The pecking order THEN was ;

1° Customer satisfaction.

2° Sustainable growth paradigm as investment for innovation was NEVER short term.

3° Keeping your salaried troops happy as producers of value (the chain is judged by its weakest link) as well as your suppliers (supply chain reliability), as well as your citizen duty (paying govt. taxes) ...

All took precedence to shareholder value. Like the captain of the ship they, the shareholders, were not ephemereal WS WANKERS, they were the last to leave the boat (get their dividends and us Managers our bonuses, by the SAME token). 

Since Reaganomics all that has changed, the corporate culture has become : quarterly report is Supreme criteria, aka Jamie Dimon in Davos today,  and devil take the laggards. Asset strip them to bare bones and ship it all to cheap labour havens! 

Now we wake up to CONSEQUENCES of all that.

Yes... and Libertarians should remember their butts don't thrive on social darwinism. 

Thats the recipe for nation destruction. 

Fri, 01/24/2014 - 17:55 | 4364539 adr
adr's picture

Total profit from the whole list is probably in the negative billions.

Fri, 01/24/2014 - 18:33 | 4364667 WhyWait
WhyWait's picture

Tyler, your posts seem to be of variable quality.

Cumulative difference between capitalization and valuation for the whole list: rough estimate $70-80 billion.

I don't know how the top dot-com companies would have stacked up against this in 1999, but the collapse of the bubble caused the loss of maybe $5 trilion in market value of companies, much of it from the dot com's.  

It's interesting to see capital being pumped into companies that are probably not worth it, but I doubt this in any way compares in scale or potential impact.


Fri, 01/24/2014 - 19:34 | 4364830 ElixirMixer
ElixirMixer's picture

Well there is no way is worth $1.3 billion. Tons of people that participated in the latest round are way underwater and that round valued the company at $1 billion. 

Snapchat is a great way to send friends pictures with penises drawn on them. That's got to be worth a few hundred million. Plus now I get snapchats from Rand Paul.

Elon Musk might be a megalomaniac, but Spacex is a pretty impressive company and gets to compete in a sector where the major players haven't bothered to change their business model in twenty years. And they get the best customer - Uncle Sam.

Square is also a very cool company for small businesses. I'm not sure if it can scale-up and compete with Visa or Mastercard though. They need to start accepting Bitcoins though.

Fri, 01/24/2014 - 19:34 | 4364833 Caveman93
Caveman93's picture

Wait wait wait...The VC's invested just hundreds of millions and their valuations are in billions?? WTF? Total BS.

Fri, 01/24/2014 - 21:01 | 4365085 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

Look, this time it's different!

Maybe I should sell my Flooz,, Enron, & Webvan stock?

Fri, 01/24/2014 - 21:04 | 4365089 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

I better sell my Bear Stearns stock too.

Sat, 01/25/2014 - 05:59 | 4366079 limit_less
limit_less's picture

You thought the world was dominated by mega companies? You aint seen nothing yet

Do NOT follow this link or you will be banned from the site!