NIA Discusses US Venture Capital Bubble

There are now 96 private venture capital funded technology companies in the US with implied valuations of $1 billion or more based on their latest round of funding. This is up from 42 in January 2014 – a stunning increase of 128.57% in just 17 months!

These 96 companies currently have a total combined implied valuation of $374.2 billion. This compares to a total valuation for all US based private VC funded tech companies worth $1 billion+ in January 2014 of $118.2 billion – a shocking increase of 216.58% in 17 months!

The average private VC funded tech company worth $1 billion+ currently has an implied valuation of $3.9 billion, which is up an unbelievable 38.79% from an average valuation in January 2014 of only $2.81 billion!


Of the 42 private VC funded tech companies that were already worth $1 billion+ in January 2014, 19 of them have raised additional funding since then without an IPO or other exit. 17 of these 19 companies experienced an “up round” by raising their latest round of funding at a higher valuation than the previous round, with the other 2 maintaining the same valuation. On average, these 19 companies have experienced an insanely HUGE valuation increase since January 2014 of 265.27%!

The two with the largest valuation increases over the last 17 months are Uber and Snapchat, which now have implied valuations that have increased by 984.21% and 966.67% since January 2014, respectively.

The total value of all US corporations both public and private is currently a record $36.457 trillion, up 36.76% from the 2007 pre-financial crisis peak of $26.657 trillion and up 78.18% from the 2000 dot-com bubble peak of $20.461 trillion. During the financial crisis, the total value of all US corporate equities reached a 2009 bottom of $13.759 trillion.


Amazingly, the market cap of US publicly traded stocks, despite currently at a record nominal high – has been unable to surpass its 2000 all-time high as a percentage of GDP. However, including private US corporations, the total valuation of all US corporate equities is now worth 205.93% of US GDP and has surpassed the previous record high of 203.98% set in 2000! This means we are currently experiencing a US corporate equity valuation bubble of epic proportions – and the outcome will NOT be pretty!

corporateequitiesgdpThe median US corporate equity/GDP percentage since 1951 is only 80.87%!

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