Swedish Spotify, which continues to post heavy losses, is valued at SKr 68 billion. In the United States, firms such as Snapchat and Uber are said to be worth billions. The trend has caused many to draw parallels to the time before the dotcom crash in 2000.
Skype founder Niklas Zennström warns that the valuations on many technology companies are dangerously high and there is a risk of a downward revision. Simultaneously, he stresses that the underlying growth in the sector is strong.
“There are individual companies you could have a discussion about. But e-trade, digital advertising and appstores are real industries today. There is substance in the sector, which there was not in 1999,” says Zennström.