Tech Bubble Watch

Fred Wilson Says USV is Paying 25-50% More To Enter Deals Than in 2008

Erick Schonfeld got a quick interview with Fred Wilson today at TechCrunch Disrupt.

“Yes things have gotten very expensive if you’re an investor, but if you’re already in a company, you are benefiting from that,” said Wilson. “Opportunities come along that we like but they just don’t fit our mold anymore. 3 years ago to now, the valuations are up between 25-50% as an entry price. We have to move with the market.”

With things so frothy, Wilson basically admitted that USV was selling some Twitter stock. “I wouldn’t argue with the news reports out there,” was how he put it.

“We won’t want to get out ahead of the founders or the companies capital needs. One of the problems we have had in the last ten years is not seeing independent companies, now with the emergence of secondary markets its easier for founders, angels, early investors, to take money off table, it is easier for company to stay independent and grow.”

Wilson is interested in seeing access to the private markets expand. “It would be good if the SEC made it possible for sophisticated investors who don’t have quite the same net worth requirements to be angel investors. I see software engineers and marketing folks who are as sophisticated as anyone, but can’t participate of an angel round of one of their friends.” Wilson’s believes a tiered system in which anyone can invest ten percent of their net worth, would make sense.

As for the next big opportunity on the web, Wilson had a strange answer. “What happens next is huge societal revolution, sexual revolution You see that with things like wikileaks, bitcoin the arab spring anonymous. I think we are in for some pretty big societal upheaval. Not sure how to invest in that or if you can invest in that, but if you look at Twitter, it does benefit and enable that. Anti-establishment will be the biggest opportunities in the next ten years.”

 

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