Sequoia Capital Chairman worries about bubble in tech stocks, entrepreneurship favors China

NetEase Science and technology news March 25, according to foreign media reports, Sequoia Capital Chairman Michael Moritz Sir Michael Moritz, said in a recent media interview, technical stocks may be a bubble, many now a lot of attention and high valuations of unlisted companies may disappear.

"Quite a few crazy small companies will disappear," said an early investor at Google and PayPal. ”

The Moritz of more than $1 billion trillion of unlisted start-ups (known as "unicorn" companies) is also more common.

Valuations have similarly inflated for listed companies, and the Nasdaq 100 Index has returned to its peak in the dotcom bubble of 2000. Apple's impact is not to be underestimated – it became the first company in history to get a 1 trillion dollar valuation on Wall Street this week. (Valuation comes from investment bank Cantofizgerald)

It is not Moritz to hold a similar view. Bill Gurley, who once invested in Uber and Snapchat, said at the "SXSW" conference that Silicon Valley was "totally devoid of awe", and that the companies that lost money there were still hiring more than they had ever been.

Moritz said the industry would emerge with a large number of "unicorn" companies, but the market was much more mature than the last time the valuations climbed to such a high level.

"You're going to run into an unreliable business model or a variety of fantasies," he said. "There are a few now, but after a closer look, most companies are safe and have a sustainable business model." ”

But he also pointed out that the use of money in Silicon Valley companies would be better if invested in China. He thinks China has "the most suitable environment for entrepreneurial development in the world." ”

Moritz said that of the 20 companies with the highest valuations in the world, 7 are located in China. This includes smart phone maker Millet. After the latest round of financing, the company's valuation reached 46 billion dollars.

"Westerners refuse to admit that China's technological prowess is growing, but the balance is skewed," he said.