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The only problem with sites like these is that there is an inherent incentive to boost the theoretical price of a private company beyond all reasonable valuatio
by charlesju 17y ago
The only problem with sites like these is that there is an inherent incentive to boost the theoretical price of a private company beyond all reasonable valuations because
(1) They get ridiculous press like the one above that plays off their sensationalist valuations.
and
(2) Companies are more willing to use their sites as guidelines if they overshoot their own internal realistic models. Which is ultimately their business model.
- synnik 17y agoIt also isn't an open market. Did I read that right that people owning shares in a private company need to put them up for sale? So the supply of shares is limited vs a public company. First off, many shares aren't going to be transferable due to vesting schedules, agreements, or other logistical details. Even if they are transferable, many holders probably don't know that there is even a market on which to sell them. I've got to believe that the fraction of shares truly available make for a very short supply compared to any public company.