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Overall dollar for dollar it's even or in the black for Fidelity for what it's worth because of the massive Uber write ups. Seems like a non-event to me, peopl

Overall dollar for dollar it's even or in the black for Fidelity for what it's worth because of the massive Uber write ups. Seems like a non-event to me, people just want to believe these valuations are insane. Are you really feeling that much better that Snapchat is worth $10bn instead of $15bn if you hate Snapchat?

ucaetano 11y ago
The event is not the mark-down, but the publicity of it. Most of the mark-downs of privately-held startups happen behind closed doors, and they are only visible when new rounds are announced (and only if they include the valuation). Having Fidelity investing in startups adds a whole new layer of public disclosure to the VC world, specially relevant in the light of the large number of stale unicorns.
- ryan-c 11y ago
  GSV also has a bunch of startup investments that it publicly discloses value information on if you look at their 10-Q and 10-K filings.
sbisker 11y ago
The fact Fidelity is being this transparent is great news for engineers in the startup scene considering or holding jobs at these companies. No longer can managers keep selling a dream that was last pitched years ago at their last funding round; they'll have to compensate for underwater options with rising salaries or grants to keep talent around. Certain startups have a habit of delaying sharing bad news with their employees to the very brink of collapse; this behavior will now be in check somewhat.
- jgalt212 11y ago
  I heard that. Employees need more data to evaluate job offers (especially in this economy where the big guys are offering a lot of cash, and the small guys are offering a lot of cash too but also equity of sometimes dubious value). If you take equity, you are not only subject to dilutions, but also to other investors getting much more preferential terms to you. I'm not saying to don't take a job because of shares, RSUs, or options offered, but one needs to take a hard look at these things to figure out what their true worth is. And in most cases, you may only be able to compute a confidence interval and not a point estimate. Fidelity's disclosure makes this seemingly intractable problem a bit less intractable.
- toomuchtodo 11y ago
  Curious to see how much devaluations push salaries across the board up, rapidly increasing burn rate of on-hand cash.
- chatmasta 11y ago
  So by publicly devaluing a portfolio company, Fidelity increases that company's hiring costs. How is that in Fidelity's best interest? Sure, they're devaluing the company, but they still have a stake in it... why be so public about the devaluation?
  - a3n 11y ago
    I imagine Fidelity's fund customers would want to know.
    - etrain 11y ago
      Fiduciary Duty.
      - toomuchtodo 11y ago
        Which is far more important (from a liability standpoint) than pissing off companies you're invested in.

ucaetano 11y ago

The event is not the mark-down, but the publicity of it. Most of the mark-downs of privately-held startups happen behind closed doors, and they are only visible when new rounds are announced (and only if they include the valuation). Having Fidelity investing in startups adds a whole new layer of public disclosure to the VC world, specially relevant in the light of the large number of stale unicorns.

ryan-c 11y ago
GSV also has a bunch of startup investments that it publicly discloses value information on if you look at their 10-Q and 10-K filings.

sbisker 11y ago

The fact Fidelity is being this transparent is great news for engineers in the startup scene considering or holding jobs at these companies. No longer can managers keep selling a dream that was last pitched years ago at their last funding round; they'll have to compensate for underwater options with rising salaries or grants to keep talent around. Certain startups have a habit of delaying sharing bad news with their employees to the very brink of collapse; this behavior will now be in check somewhat.

jgalt212 11y ago
I heard that. Employees need more data to evaluate job offers (especially in this economy where the big guys are offering a lot of cash, and the small guys are offering a lot of cash too but also equity of sometimes dubious value). If you take equity, you are not only subject to dilutions, but also to other investors getting much more preferential terms to you. I'm not saying to don't take a job because of shares, RSUs, or options offered, but one needs to take a hard look at these things to figure out what their true worth is. And in most cases, you may only be able to compute a confidence interval and not a point estimate. Fidelity's disclosure makes this seemingly intractable problem a bit less intractable.
toomuchtodo 11y ago
Curious to see how much devaluations push salaries across the board up, rapidly increasing burn rate of on-hand cash.
chatmasta 11y ago
So by publicly devaluing a portfolio company, Fidelity increases that company's hiring costs. How is that in Fidelity's best interest? Sure, they're devaluing the company, but they still have a stake in it... why be so public about the devaluation?
- a3n 11y ago
  I imagine Fidelity's fund customers would want to know.
  - etrain 11y ago
    Fiduciary Duty.
    - toomuchtodo 11y ago
      Which is far more important (from a liability standpoint) than pissing off companies you're invested in.