The VC powerhouse who cofounded Paypal and was the first to invest in Facebook says that it’s not just the tech sector that is seeing pie-in-the-sky valuations. Almost everything today is overvalued, he says, according to Bloomberg.
“Startup tech stocks may be overvalued, but so are public equities, so are houses, so are government bonds. Silicon Valley is quite far from it. If the bubble is in cash, illiquid startup investments may be a place to hide.”
Thiel made the comments at the LendIt USA Conference in San Francisco this week in the wake of reports of further declines in venture capital investment in startups in the first quarter of 2016. Many now think the skyrocketing valuations of unproven companies aren’t sustainable. As for Thiel, he said most of his firm’s future investment will continue to be in tech “But there’s always this question: Should we be doing more things in some other places? Maybe we should try to look at places outside Silicon Valley,” he said.MG