How far can pre-IPO tech values go?

Market may be setting itself up for another fall 15 years after collapse of Internet bubble

A flood of money from unconventional sources has sent valuations of late-stage technology startups, including Uber Technologies Inc and Snapchat Inc, to levels that haven't been seen since before the dot-com crash.

Hedge funds and mutual funds that once shunned venture-style deals are flocking to the market's hottest corner, paying 15 to 18 times projected sales for the year ahead in recent private-funding rounds, according to three people with knowledge of the matter. That compares with 10 to 12 times five years ago for the priciest companies, one said.