Sam Altman's bet reveals the gap between public markets and VCs - Business Insider

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Y Combinator's Sam Altman made a gutsy bet with critics 5 years ago to prove there wasn't a startup bubble. The reason he lost shows a disconnect between public and private markets.

, and he thought the bubble talk was way overblown.

"That was back in a time when it was really nonstop," Altman told Business Insider. "Every other article was about a bubble or said we were in a bubble. I felt very strongly that startup investing was not, but I didn't have the specific numbers so it was hard to say who was right and who was wrong."that fears of the bubble were overblown.

"They were quite dramatic," Altman now says of his 2015 predictions. "If anything, I would have scaled them back. It wasn't a bubble, it was the opposite." When the clock struck midnight and the world welcomed a new decade, Altman started crunching the numbers to see how his predictions panned out. "Sometimes the TechStars guy would email me about one startup or another, but other than that I wasn't really thinking about it," Altman said of the bet over the last 5 years.

 

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