Veteran Silicon Valley investor Marc Andreessen has claimed that there is no new high tech bubble forming.
Speaking during the All Things D D9 conference, Andreessen said that there was a bubble when people believe it is not there.
“There's a very large number of people who think there is a bubble, (but) the key characteristic of a bubble is that everybody is convinced there isn't a bubble, which means there isn't a bubble," he said during the conference.
"Generally, if everybody is upset, that's a good sign... I hope people will think there is a bubble because it will price it down,” he added.
The investor, who founded Netscape in his early days, claimed that price to earnings ratio of tech firms like Apple, Google, Microsoft and Cisco was low, meaning that a bubble does not exist.
When queried about the recent IPO launch by LinkedIn and how it doubled its share value in the first day, Andreessen said that it was due to investor interest and not because there was a bubble.
“It's only one company. Number two, it only just went public. Number three, there's very little float. Number four, the public market is starved for growth .. and LinkedIn is growing very fast,” he said.