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Do they? I have less than zero idea of what getting LP funding is like, but it may work out better for them. As long the unicorn hasn't IPO'd yet, it's not a f
by patmcguire 9y ago
Do they? I have less than zero idea of what getting LP funding is like, but it may work out better for them. As long the unicorn hasn't IPO'd yet, it's not a failure. Once it's IPO'd it is what it is, and if it's bad it's bad. Bad returns + high potential may be an easier sell to a pension fund or family office than what the actual numbers will be.
- ithinkinstereo 9y agoThe problem with that approach is that VC valuations are almost entirely predicated upon hype and future performance, way more so than the public markets. So more VC funding = higher valuations that the Unicorn then needs to meet in the public markets. If they can't match private valuations, alot of people get wiped out; first and foremost the employees and founders. So it's like a game of brinkmanship until something breaks.