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If I may speculate, it seems like the end result of this situation will be that in the future, startups will avoid taking money from mutual funds or anyone else
by damon_c 11y ago
If I may speculate, it seems like the end result of this situation will be that in the future, startups will avoid taking money from mutual funds or anyone else who must attempt to accurately value their holdings publicly, whenever possible.
- dragonwriter 11y agoThat preference would reduce the available supply of startup investment money, and thus valuations.
- untog 11y agoIf they have a choice. The situation where startups are spoiled for choice in investors will not continue forever. Frankly, the fact that public valuations (of any kind - see Square's IPO level) are lower than private ones should be ringing alarm bells all over, not be dismissed.