The only technology bubble brewing is the one inside Silicon Valley, but in the bigger picture, there is a tech "renaissance" underway, said tech investor Mark Cuban.
"I think there is a bubble in Silicon Valley because they are in their own little universe," Cuban told CNBC's “Squawk on the Street.” "When I look at the valuations for start-ups, in the Valley they start at $5 million and go up, and I just laugh."
While Cuban, chairman of AXS TV and owner of the Dallas Mavericks professional basketball team, cautioned investors to stay out of investing in Silicon Valley start-ups, he said tech start-ups elsewhere are thriving because the cost of starting a tech company have significantly decreased over the past few years.
"There is a renaissance for start-ups right now in the technology world," Cuban said. "Now, if you have a laptop a phone, a broadband connection, and Amazon.com web services connection, you can pretty much start any company that you want ... the cost of start-up companies has dropped like a rock and the number of companies being started in the tech industry has just exploded."
One New York-based start-up Cuban said he is invested in is called Motion Loft, an analytics company that makes sensors that track the foot and vehicle traffic in front of buildings. The sensors are meant to help businesses make data-driven decisions, Cuban said.
While Cuban said the tech scene is robust right now, he warned that patent disputes could pose a threat to technology innovation.
"I think it's bad for the country, I think it's bad for consumers, and I think patents have to change," Cuban said. "Talk about risk factor, there is no small business in America today that is not at risk for being sued by some idiot who is trying to get a quick dollar or wants to protect their market because they are afraid of competition."
Software patents are anti-competitive and should either not exist or be restricted to lasting certain number of years, Cuban said.
Cuban also weighed in on the controversy surrounding Facebook's Chief Financial Officer David Ebersman, who came under scrutiny earlier this week after a New York Times article written by columnist and CNBC anchor Andrew Ross Sorkin slammed Ebersman for the failure of Facebook's initial public offering.
Sorkin's article claimed that Ebersman is to blame for Facebook's fall from grace because he sought to set the IPO price much too high and pushed to sell more shares than were originally planned.
Cuban, however, disagreed. He said that Ebersman was simply doing his job.
"Look, on Facebook, buyer beware. If you are an investor, you have to know what you are buying," Cuban said. "If he is my CFO ... I'm telling him I don't want to deal with Wall Street anymore than I have to. Just go get me what you can get me and let's go back to work. And I think that's what their CFO did."