Bubble watch: a comparison of 1999 and 2013

By April 24, 2014 2 Comments

The markets are hotter now than they have been for a while and people are (once again) talking about bubbles. The data points below show that in terms of the IPO market at least the heat is nothing like what it was in 1999.

  • Median sales of company at time of IPO — $12m in 1999 vs. $106m in 2013
  • Median price/sales ratio at time of IPO — 26.5x in 1999 vs. 5.5x in 2013
  • Total # of tech IPOs — 369 in 1999 vs 45 in 2013
  • Total IPO proceeds raised — $33.5 billion in 1999 vs $8.5 billion in 2013
  • Average first-day stock price increase at IPO — 81% in 1999 vs 20% in 2013
  • Total venture capital dollars raised — $55 billion in 1999 vs $17 billion in 2013

This data is from a Ben Horowitz annotation of a David Einhorn post on RapGenius.

As a side point I’m loving the power of inline commenting on Medium and RapGenius. Commenters can talk directly to the point they are interested rather than having to comment on the whole post or explain which part of the post they are talking about. That makes the comment more powerful and easier to write. I’d love to bring inline commenting to this blog.