"Over the last five months, many venture capital players have raised giant chunks of capital. One Facebook investor, Accel Partners, is about to raise $2 billion for investments in China and the United States, while Bessemer Venture Partners is said to be closing in on $1.5 billion for a new fund. Greylock Partners, Sequoia Capital, Andreessen Horowitz and Kleiner Perkins Caufield & Byers have collectively raised more than $3 billion in the last six months."
I keep people hearing people say things to the effect of "it's not a bubble, because the investment is confined to a small amount of private equity". And I suppose that even rapid, multi-billion dollar growth in VC might be explained exclusively by the irrationality of a few private investors. But is that the likely conclusion here?
Biotech investment tanked in 2009, and has barely begun to recover. Every statistic I've seen says that valley software companies are still getting the lion's share of VC investment:
I keep people hearing people say things to the effect of "it's not a bubble, because the investment is confined to a small amount of private equity". And I suppose that even rapid, multi-billion dollar growth in VC might be explained exclusively by the irrationality of a few private investors. But is that the likely conclusion here?