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It's going to be interesting to see how long private markets can maintain irrational bubbles hidden away from transparency.

I think a lot of people are "rich on paper" and scared to know exactly what that means.

As a corollary to this, I've recently seen private secondary markets boom quite rapidly. There's probably a huge opportunity there.

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Private Secondary markets are a huge opportunity.

I'm not sure the lack of transparency is a big issue, except for employees. The VCs generally know what's going on, if not the mutual funds that get in late.

What generally corrects markets quicker is the ability to short. When you can't short (or make a bet that something will go down) then it's only the optimists who are setting the price.

Yeah, very fair point on this. Are private secondary markets just by default eternal bull markets? What's the price correction mechanism? Devaluation due to massive supply/demand imbalances?

Interesting space to get involved in, for sure.

If the market is small enough and there isn't leverage, you can have long term price dislocations. (Example: penny stocks) If the purchases are funded by borrowing, then eventually the debt payment come due and force corrections.

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