Exactly. It is a totally arbitrary process. Valuations have nothing to do with real economic value or real profits of a company. We see it all the time. In fa

Exactly. It is a totally arbitrary process. Valuations have nothing to do with real economic value or real profits of a company. We see it all the time. In fact, valuations and the subsequent "exit" venues (IPOs, acquisitions, etc..) can be thought of as a form of money laundering in which money is collected from the public and funneled into the pockets of VCs. If you have the power to create the hype, you can "value" anything at any amount you like.