AOL co-founder Steve Case told CNBC on Friday he disagrees with Mark Cuban's view that a bubble is forming in early-stage tech companies that could rival the 2000 crash in Internet stocks.
Case said less than a 10th of a percent are investing in so-called angel networks, communities of investors that put money into nonpublic start-up.
"There's a lot of capital, maybe a little froth in places like San Francisco or New York City or Boston, sort of the tech hubs, but most of the country is desperately in need of capital. Most entrepreneurs need those angels in their communities to support them, and I'm hopeful that there will be more people who are supportive of these young start-ups," he said in a "Squawk Box" interview.
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On his blog Wednesday, Cuban warned that a bubble is forming in the market for private technology investments. He said it was potentially more destructive than the public company bubble that popped 15 years ago because investors in app developers and other digital ventures lack the ability to sell their positions.
He warned that small individual investors in app creators may have no chance of getting their money back.
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The valuations for late-stage companies that are just about to go public are getting a little frothy, but the initial public offering market is starting to show more discipline, Case said.
"Setting the value of those companies is becoming tricky, and some of those really late-stage private valuations may have trouble supporting themselves," he said.
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The core issue remains how to make sure more entrepreneurs in all sectors have access to capital in order to fuel more jobs, he said.
Daymond John, Fubu founder and CEO, said he is getting frustrated not only with nonqualified investors going into the market and getting no liquidity, but companies whose valuations dramatically outpace their revenues. Daymond invests in companies alongside Cuban on the show "Shark Tank."
"Every time somebody comes on the Tank, 'Hey I'm in series A, series B,' and they have about $1.5, $2 million in funding and they're valuing their company at $20 million and they don't have any sales, I get frustrated," he told "Squawk Box."
DISCLOSURE: ABC's "Shark Tank" is rebroadcast by CNBC.