The Tech Bubble Is About to Burst, This VC Says
An early investor in Google believes Silicon Valley is stuck in a bubble on the verge of bursting, The Times of London reported Tuesday.
Sir Michael Moritz, chairman of Sequoia Capital, told The Times in an interview that the value of many "unicorn" technology companies—relatively young, multi-billion dollar ventures like Uber and Snapchat—will fall in the coming months.
"There are a whole bunch of crazy little companies that will disappear," Moritz told The Times. "There are a considerable number of unicorns that will become extinct."
Concerns about a bubble brewing in the industry, like those of Moritz, have grown common.
Moritz, who early on invested in Paypal, owned by eBay, admits "a good number" of these companies will "flourish," The Times reported, though he says the capital invested in Silicon Valley is better spent in China's rich, emergent tech sector.