How to prove that there's no tech bubble through Uber's latest financing round: Uber's Series G is frequently brought in as an example of the perceived tech bubble that should be afflicting Silicon Valley and most of the startup world.
I personally don't think there such a bubble as I see Uber's 2.1B$ fundraise (than oversubscribed at 3.5B$) by the Saudi Wealth Fund as a simple debt transaction disguised as equity.
What I mean by that:
What I think is that the Saudi Wealth Fund basically said: "Take whatever valuation you want, but we are going to set a senior 2x non-participative liquidation preference". This way the sovereign fund will have a position which is not linked to performance but guarantees a nice return, risk-free. Much better than corporate bonds with the boon that the company witnesses an increase in the perceived valuation and therefore might command a higher initial share price in the case of an IPO.
Proving such a thing would show how the real valuation is lower than hugely critiqued 70B$ valuation, and that in general behind high valuation there's not a blind belief in the potential of a company but a traditional lending process.
What do you think?