A "golden age" in technology, driven by innovations in industries like cloud and mobile, have helped push valuations, Solomon said. He added that not only venture capital firms, but also long-only funds and hedge funds, have bought into private tech companies anticipating growth.
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"I don't see that abating any time soon because there's so much demand for growth," Solomon said.
In the current environment, companies have raked in capital without the effort required to file an IPO.
"You can raise more money, you can raise it faster, with more certainty and higher valuation without diverting much of your time and attention in a private round versus an IPO," Solomon said.
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While some private tech giants hold financial profiles to justify their valuations, other younger companies have caught the venture capital wave without foundations to match, Solomon noted. Though private funding has led to massive, sometimes inflated valuations, there's "no way to beat a freely trading market" once companies grow large, he said.