Venture Capitalist Peter Thiel, co-founder of PayPal and the first outside investor in Facebook, doesn’t think the technology sector is in a bubble, but he’s still looking to diversify this portfolio.
During a speech on Tuesday at the LendIt USA Conference in San Francisco Thiel said:
“Startup tech stocks may be overvalued, but so are public equities, so are houses, so are government bonds … Silicon Valley is quite far from it. If the bubble is in cash, illiquid startup investments may be a place to hide.”
Venture capitalist funds have been in retreat since 2015 because of concerns that many tech darlings have been accorded unsustainable valuations.
Thiel says he is, “somewhat concerned by the frothiness of the markets.”
While Paypal’s co-founder is still invested heavily in American tech companies, he is looking aboard and into non-tech investments for a good portion of the $1.3 billion that his Founders Fund recently raised.
“About two-thirds or three-fourths of Thiel’s investments will be in areas including next generation technologies, consumer Internet, and enterprise software,” he said.
“But there’s always this question, should we be doing more things in some other places,” Thiel said. “Maybe we should try to look at places outside Silicon Valley.”