mr. lilly: we make our decisions on a micro basis. we feel the prices we are paying are higher.e being asked to take on risk. we are finding great entrepreneurs too. >> it doesn't matter too much if you're overpaying, but you have to keep your eye on the target. emily: it doesn't matter if you overpay? >> at the early stages. emily: what do you think of what they said. >> i'm shocked that investors want to pay lower valuations. when i talk to friends of mine who are starting out with new companies, they tell me it's not easy to raise money when you don't have traction. those aspirational raises are harder. my conclusion is not that silicon valley is frothier, but if you can't demonstrate traction, everything is so benchmarked. it becomes harder. emily: you think we are in a bubble? companies taking on too much risk? many of these companies will not be able to sustain these valuations. >> the short answer is that we are not in a bubble. some late stage companies won't pan out. i don't think any investor is guaranteed a risk-free return in late stage companies. there is an argumen