Horowitz: VC is not in a bubble

Prices are high says the Andreessen Horowitz co-founder but not in bubble territory

Prices are sky high in venture capital, but Ben Horowitz, co-founder and partner at  Andreessen Horowitz says venture isn't in bubble territory yet.

“People want to believe (VC) is a bubble,” he said during an interview at the Milken Institute Global Conference on Tuesday. He noted that people when people think they are in a bubble, it's probably not one.

He touched on the rising valuations that companies are getting for staying private longer and noted that the investors in these deals may not always have a clear idea of what they are looking at. 

“People invest in these companies like they are public companies,” he said adding that with the advent of hedge funds, mutual funds and other LPs getting in on venture pushing prices high.

Notably, Horowitz also cited the lack of regulation in private offerings as a problem for the expanded investor base. He called the pre-IPO process “scary” and “completely unregulated,” when it comes to investor disclosures and providing an honest accounting of the company's health. 

He added that when companies go public they face stringent disclosure requirements.