Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Growing Concerns We are in a Tech Bubble

Details

  • Description

    Menlo Ventures Managing Director Sonja Perkins argues we are not facing a tech bubble.

  • Duration 5:08
  • Date

Clips

Also in this playlist...

All Things Digital

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

With the successive -- -- public debut many people on the street are wondering one question are we in -- tech bubble well we decided to ask an expert someone who lives in breed technology.

Every single day Sonja Perkins is in managing director with Menlo ventures for happy.

Happy here today thanks for having OK so it's a question -- -- -- -- -- and now I think we are in -- tech bubble.

Out for the last ten years or so they -- then that very few IPO's as the stock market has been relatively closed to new technology companies.

So I -- there's a very large backlog of really great terrific companies that are that have gone public and are ready to go public.

But what about the valuations some of these companies -- we're talking about potentially going public whether it's linked to an agreement -- bond her Twitter.

The revenue models are proven yet and the multiples that we're talking about the overall valuations.

Are -- -- how do you.

Kind of bridge the gap.

Well there's definitely a lot of excitement around these companies.

And there's a lot of pent up demand for people who want to buy these companies.

-- -- I believe that these companies will grow into their valuations because they really are shifting the way that way the world is communicating and talking today.

-- be really exciting but I do believe that these companies will be the core platform companies of the future but not all of them are going to.

He.

Next big thing whether it's going to be the next Google and next apple -- -- differentiate.

The big ones the winners and losers.

Well I think it's hard to say it right now but I think what will happen is they'll have to have a proven business model.

And if they have a prison's proven business models they will be able to capitalize on what like you look at Microsoft they just had -- -- not they did a phenomenal job.

Kind of building a quarter products that.

Continue at least sold for a long time and I think today with these new paradigms of new case apparently people are.

Communicating.

There'll be lots of new business models that will be established in the ones that maintain will maintain their valuations -- entrepreneurs every single day new ideas.

And tips out there to some of our viewers -- Are looking to potentially get venture capital money.

-- have to present themselves in their ideas.

-- that given a heads -- absolutely offers well.

America as a great place to start a company so entrepreneur -- -- -- and -- thriving so if you start a company.

And the first thing I recommend is kind of big market.

And actually go out and talk to your customers and make sure that they actually want to buy whatever it is you're selling or use whatever that your doing.

And then hire the very best people find the best people that can help execute the plan.

And of course eventually get a business model that works -- have -- have insight into what kind of business model will make a lasting business with profitability and cash flows right and any hot areas right now that you think and could be right front partnership absolutely now is really an exciting time -- -- furious that I think are very exciting in the first one is the consumer cloud.

For all the complexities and I -- are now being brought into the cloud.

Which enables some really exciting applications and it's -- services to happened three -- the cloud for example Menlo ventures has a company called carbon night.

Which enables PC and Mac -- back up just from a simple.

-- in your computer where you don't have to own any of the hardware -- any of the the items to back up.

Another one is -- -- is the music network and it's the music service that enables consumers to pay ten dollars a month and listen to the world's entire music collection are almost the world's entire music collection.

I'm from any device from any PC from any.

-- -- anything yet and another area which is really exciting is this is the social enterprise.

So Twitter and FaceBook have done it really great job.

Educating the world on ways to communicate one to many in many to one and they've done a really good job with that with the consumer.

Right now businesses are beginning to use those techniques to communicate better to their employees and that there constituents or their customers.

We at Menlo ventures were involved in the company called social -- And social -- was recently sold to VMware.

And what they did is they enabled.

Employees to communicate and collaborate within enterprises.

We actually even have another company called encircle.

Which has a business product called benchmark.

And benchmark is a really exciting because it allows -- at allows businesses.

To compare their information technology infrastructure with others so they can determine if they are secure not Essex secure.

-- over time using this kind of private.

Social network.

Become more secure for that kind of -- -- world overall.

Alright great you gave some great tennis great tips trying to bring viewers out there are great -- -- probably doubters out there that think there weren't tech bubble.

According to one expert -- -- we're not -- -- thanks for having me great things.

Load More