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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THECOMINGDEPRESSION's picture

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:

http://freebitco.in/?r=224682

moonman's picture

Does your aunt make $10k a week also?

Go away

THECOMINGDEPRESSION's picture

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

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.

maskone909's picture

good opportunity to short the commercial realestate sector

Vampyroteuthis infernalis's picture

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

camaro68ss's picture

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

Cursive's picture

@camaro68ss

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

fonestar's picture

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

GubbermintWorker's picture

Is that in US Dollars or your precious Bitcoins?

fonestar's picture

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

kornholio's picture

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

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.

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.

 

 

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.

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 50...in 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"?

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 50...in 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....

http://www.nasdaq.com/symbol/nflx/interactive-chart?timeframe=5d&chartty...

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! 

 

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.

 

 

NotApplicable's picture

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

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

FiatFapper's picture

"There buying up retail space..."

*They're

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.

 

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.

 

malek's picture

Huh?
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.

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 Email:support@interglobal-ltd.com
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: belize@trinityserv.com 
Host of the IP:interglobal-ltd.com[Host IP :192.254.189.107
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
Professorlocknload's picture

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

Bangin7GramRocks's picture

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

codecode's picture

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

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. 

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. 

camaro68ss's picture

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

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.

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).

MachineMan's picture

"Good Technology" is today's BlackBerry.

THECOMINGDEPRESSION's picture

There's going to be a trillion bubbles soon

superflex's picture

THECOMINGDEPRESSION

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.


ParkAveFlasher's picture

Bear trap, bitchez!

The Wisp's picture

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

max2205's picture

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

 

Wait till the bull trap folks

midtowng's picture

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

NotApplicable's picture

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

Profits are sooooo last century.

NEOSERF's picture

Add Care.com 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 ehealth.com and double down on profits...silly.

Common_Cents22's picture

Care.com 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.   

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

 

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.