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This is just the market reflecting reality. Most of the "unicorns" aren't actually worth the billion or so dollars their valuations are at. They don't generate
by SEJeff 11y ago
This is just the market reflecting reality. Most of the "unicorns" aren't actually worth the billion or so dollars their valuations are at. They don't generate enough of really anything that is worth the silly valuations they get. This is why free markets are a good thing. They eventually correct themselves.
- PopsiclePete 11y agoExactly. I honestly don't see the problem. Some VC lost a bunch of money? Oh well!
- danieltillett 11y agoNo the limited partners lost some money. Guess who they happen to be?
- mikeg8 11y agoSo what? As an LP, they made the choice to let someone else actively manage their money. Part of the risk/reward trade-off when using VC as an investment vehicle.
- danieltillett 11y agoI am just pointing out who is losing the money. The fact that a large amount of this money is coming from pension funds trying to hit totally unrealistic returns in a zero interest environment is just an unfortunately coincidence.