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Why a tech bubble isn’t brewing

Nasdaq market
Scott Mlyn | CNBC

As the Nasdaq approaches an all-time high, is a tech bubble brewing? Venture Capitalist Guarav Jain says no.

"The Nasdaq is close to 5,000 and it's making people nervous, but I feel that's where the similarities end," said Jain on CNBC's "Fast Money Halftime Report."

Jain, Founder Collective Principal and early Producer Manager for Android, says it comes down to three simple reasons why this isn't the 2000 tech bubble all over again: more people connected to the internet, an ecommerce spending boom, and technology investing is now more advanced.


"We’ve come a long way in the last 15 years in understanding tech companies." -Guarav Jain, Founder Collective Principal

He says that in 2000 the internet was only a novelty and today it is a necessity. "We practically live our lives on the internet now. Back in 2000, most of us were on dial-up and would connect once, maybe twice a day," Jain said.

When it comes to online retail spending, Jain said the trend is only getting started.

"The amount of ecommerce spending has gone up several fold in the last 15 years," he said.

He cites the advancement of methods used by analysts to evaluate tech companies which protect the retail investor.

"We've come a long way in the last 15 years in understanding tech companies. We have more sophisticated tools to understand and project cash flows for tech companies than we did in 2000," he said.

He says that if there is a market correction, it won't be anywhere near the magnitude of the 2000 crash.