Democratization of private tech companies

The private tech market is once again the hottest ticket in town. Just this morning, I was fed another ad for a fund being launched by a former democratization of real estate company. This was on top of Robinhood’s venture fund launch last week. And likely many more that I have just completely lost track of.

It’s what people want right now and there are firms gladly to provide it. Unfortunately, I know how this will all end. It’ll be similar to the democratization of real estate craze but multiples worse. While you can lose money on a real estate investment, the prospects of losing a lot more money on tech investments are much higher.

Most retail investors just do not understand just how risky and volatile a tech stock can be. This age of AI has many folks feeling FOMO including myself at times and I’m not smart enough to go out and call this the “top”, but I do know that there is a good amount of risk right now. A lot of retail investors are going to get burned. I can see the articles in a few years now.