Alibaba opens floodgates for more IPOs: VC

Alibaba Group, the Chinese Internet retailer behind the biggest initial public offering ever, has opened the floodgates for even more tech IPOs, a venture capitalist told CNBC on Monday.

"The Alibaba IPO is a watershed moment and what it does, it does open up, just like the Facebook IPO, opportunity for a lot of IPOs to go out," Venky Ganesan, managing director at Menlo Ventures, said on "Squawk Alley." "There's a bunch of companies on file, including some in our own portfolio, and we're very excited for the second half of the year."

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Ahead of Alibaba's offering on Friday, though, venture capitalist Bill Gurley told The Wall Street Journal that Silicon Valley is getting a little too risky with all of these start-ups.

"I think that Silicon Valley as a whole, or that the venture capital community or start-up community, is taking on an excessive amount of risk right now; unprecedented since '99," Gurley told the Journal.

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Ganesan downplayed Gurley's concerns.

"While we are in an up cycle, we are nowhere close to the top," Ganesen said. "I think what's going on is more like a block party than a citywide party. There are pockets of irrational exuberance, but for the most part, I think it's actually fine."

Ganesan acknowledged that the party will someday end—but in the meantime, he plans to capitalize on the right investment opportunities.