still worried about a "Internet bubble" new incoming? Four chart of this paper, will present capital movement in Silicon Valley for nearly twenty years for you, and the "Internet bubble" will not be swept through the stock market once again the ultimate answer. This article comes from Vox, the original title 4 charts show how today ‘s boom is from the 1990s, author Timothy.B.Lee
many people think that, in 1990s the technology boom can be traced back to August 9, 1995, this is the Netscape IPO day. At that time, the company has just set up 15 months. After IPO, Netscape stock price soaring, on the first day of trading and financing of $2 billion.
IPO has become the standard action of technology start-ups in 1990s. Today’s technology giants, such as Amazon, YAHOO, eBay, are listed at that time. There was no IPO many companies, in the end of the Internet bubble in 2000 was defeated.
today, Silicon Valley ushered in another wave of technology, but now technology companies can get funding from more channels. In order to raise funds to expand their own, began to raise more money to the rich, rather than open to the public.
here are the four charts from Anderson ·, the Evans fund of Benedict, which reflects how Silicon Valley’s capital movements have changed over the years.
1) compared to 1990s, now IPO technology companies are less
The number and value of
technology has started to decline since 1990s. In the past ten years, the number of IPO has fallen to a much lower level than in the 80s of last century, although people are now paying more money than they did in the past.
2) technology start-ups are now more likely to raise private capital
IPO is not as common as it used to be, because ordinary investors have little opportunity to invest in technology companies. And technology start-ups are more inclined to integrate into private capital, such as venture capital, private equity funds, etc.. These private capital has been an important source of funding for Silicon Valley, but until recently, they have become the most important technology companies financing channels.
in some cases, driven by government regulators, technology companies can only offer in public markets. The securities and Exchange Commission requires start-ups to make a public offering of up to 500 shareholders. This provision is the most in 2012 Facebook IPO >