Why Are So Many Tech Companies Worth Billions? | Compound Interested Ep. 2

There are currently about 200 “unicorn” startups, privately held companies worth over a billion dollars, and most of them are tech companies. Considering that many of them have never turned a profit, does this make sense? We take a look at how investors decide what a company is worth and whether their efforts are closer to an art or a science.

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20 thoughts on “Why Are So Many Tech Companies Worth Billions? | Compound Interested Ep. 2

  1. i got something that is worth billions and could save millions of people. i know how it will make money and everything and its foolproof. i can change the world. check out my vid. No i dont reveal my plan in fear of people stealing it.

  2. Not a dotcom bubble. This video does not articulate how hard it really is to raise a round with VC's. Almost all startups are rejected 50+ times by VC's before finding a willing investor (if they get that far).

  3. Do you notice something in this video? the people's heads are so small with bodies so big. does that mean, this fact is true? or I mean, people in this venture are ignorant?

  4. I will say this from a man that has worked in not just one or two but FOUR start-ups.
    Most of them are crap. It's usually just some shitty app that has no real hope to make a dent on the infrastructure of the industry it's made for. Cloud is even worse, condensing that to the bare bones of what it is, it's a server in the internet. Nothing more. Even worse, there's a ton of copying and pasting that goes on inside these tech companies. There's a large mirror image between this company and that, so on and so on. Cutting the story short, it really is a bubble about to burst. If not, it's already bursting. There were THOUSANDS of these companies since 2009 when the bubble began and we have only a few that are actually making any money. It's actually pretty depressing for many who are college grads because, well…. this is the only industry that's actually hiring.

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