Hi, this chart if from a story that reports on how lossmaking startups have still managed to gain close to $1tn in valuation, adding to fears about an inflating bubble in private markets that could spill over into the wider economy.
Tech has endured boom and bust cycles. But the current scale of investment is on a different magnitude. VCs invested $10.5bn into internet companies in 2000, roughly $20bn adjusted for inflation. In all of 2021, they put $135bn into software-as-service start-ups.
VCs are on course to spend well over $200bn on AI companies this year.
Source: PitchBook; FT calculations
You can read the full story for free with your email here: http://ft.com/content/59baba74-c039-4fa7-9d63-b14f8b2bb9e2?segmentid=c50c86e4-586b-23ea-1ac1-7601c9c2476f
Victoria – FT social team
by financialtimes
1 Comment
I think normalizing for tech market cap would give a vastly different picture. Dot com was a fundamentally different era where tech “giants” where much smaller, social media companies weren’t a thing, the only at home device connecting to the internet was a pc or laptop, etc. We are definitely headed for a burst bubble though either way imo.