Venture capitalist Jason Green said that the world can expect more "unicorn" companies, or startups valued at $10 billion.
Green, founder and general partner of Emergence Capital, said they are rare, but they exist.
"They're called unicorns because it's supposed to be mythical," he told Press:Here. "(But there's been) Dropbox, Airbnb and Uber."
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When asked what makes a company worth $10 billion as opposed to $1 billion, Green said that it's both positive and negative.
"I think (when that happens) there's cause for optimism and concern," he said. "There can be a lot of frenzy."
Christina Farr of Reuters pointed out that valuation can seem inflated. "Snapchat, for instance, still doesn't have a confirmed monetization strategy," she said. "But regardless, the valuation is spiraling out of control."
When asked how he determines the value at a company without a profit, Green said that he must rely on the potential of the company and start early with the companies themselves. Emergence Capital is an early investor in cloud-storage startup Box, which hasn't yet had its initial public offering.