Let's say what he says is true; the valuations are zero. The decreased valuation of these companies have a chain effect but this time the contagion is containe

Let's say what he says is true; the valuations are zero. The decreased valuation of these companies have a chain effect but this time the contagion is contained to the investors themselves. They took on all of the risk and assuming they are private then they will take the hit as opposed to say CALPERS customers. Unless they got that money to invest from public sources.