Mobile payments startup Square is set to price shares for its IPO offering Wednesday afternoon in what many on Wall Street are calling a litmus test for the health of the tech sector.
Led by CEO Jack Dorsey, Square is considered one of the preeminent unicorns, or private startups with a valuation exceeding $1 billion dollars, to tap the public markets this year,
Expected to debut on the New York Stock Exchange Thursday, Square plans to sell 25.7 million shares, which would give it a valuation of $4.2 billion on the top end of the range.
Appearing on CNBC's "Power Lunch" Wednesday legendary tech entrepreneur Kevin Ryan said even if the Square IPO gets off to a rocky start, Silicon Valley and Silicon Alley remain in terrific shape.
"There is no chance of there being a bubble right now," said Ryan. "Do i think among twenty companies valued at one billion dollars today, will one or two go bankrupt? Absolutely. But there will also be two or three that will be worth $10 billion dollars."
Ryan, co-founder of several multi billion dollar startups, including DoubleClick, Gilt, MongoDB, Business Insider, Zola and Kontor, believes the tech sector will still be going full throttle a decade from now.
"There are many, many examples of real businesses with real profits and real revenue," said Ryan. "And that's partially why so many tech mergers are happening. People are threatened by startups and want to get bigger or better, so they are buying or selling."
One company Ryan believes has been a "colossal success" is Twitter, which is also run by Jack Dorsey,
"Despite some debate on whether it is a $10 billion, $20 billion or $30 billion dollar company, an enormous number of people use the product (and) there's real value there," said Ryan