Venture capitalists and investors are continuing to pour money into startups.
In fact, there is a vast number of startups that are worth billions, The New York Times' Quentin Hardy reports.
"An unprecedented number of high technology start-ups, easily 25 and possibly exceeding 40, are valued at $1 billion or more," Hardy writes.
"Many employees are quietly getting rich, or at least building a big cushion against a crash, as they sell shares to outside investors."
But the owners of these companies say the high valuations make them a bit nervous. That's because bigger valuations mean higher expectations.
As Hardy reports, there are a few reasons for these high valuations:
- Lower interest rates
- Wealthy, private investors are putting more money into startups
- Many of these high-valued companies sell products and services directly to other businesses
Palantir joined the billion-dollar club in 2011
Data company Palantir Technologies raised a $70 million Series F round in 2011 at a $2.5 billion valuation.
In 2012, Palantir raised an additional $56 million in new funding, bringing it's total funding to $301 million.
Spotify is reportedly raising a $100 million round at $3 billion valuation
The music company raised $100 million in June 2011 from Kleiner Perkins, Accel and DST, giving it a $1 billion valuation.
In 2012, the Wall Street Journal reported that Spotify is in the middle of a $100 million financing round that could bring the company's valuation to $3 billion.
Square is valued at $3.25 billion
Jack Dorsey's mobile payment solution, Square, is another billion-dollar startup.
In 2012, Square raised a $200 million Series D round with participation from Citi Ventures, Rizvi Traverse Management, and Starbucks. Now, the company is worth $3.25 billion.
See the rest of the story at Business Insider