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True. I am cautious to say this, but if one of these over valued unicorns like Uber dies then I think the psychological effect would be similar to a bubble burs
by hackguru 11y ago
True. I am cautious to say this, but if one of these over valued unicorns like Uber dies then I think the psychological effect would be similar to a bubble burst. It would tight up the capital flow to a great extent even for solid companies
- prostoalex 11y agoAny time you see Fidelity, Morgan Stanley, Coatue or T. Rowe Price names in the funding rounds, 1x liqudation preference is usually a bare minimum for those guys to get involved. Their investors will get their money back, and even if after all is said and done it's 1x, hey, we're in a low-rate environment. Funds tout access, investors have downside protection with a potential of upside surprise, few people that do get nasty surprises are employees of those companies finding themselves staring at the ever-increasing number of newly minted shares to satisfy ratchet conditions and subsequent dilution of everyone else (case study on this is NYSE:BOX).