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Not really. Private market valuations depend on the scarcity of funding sources. If everybody suddenly has a chance to invest in a round, investors will compet
by prostoalex 8y ago
Not really. Private market valuations depend on the scarcity of funding sources.
If everybody suddenly has a chance to invest in a round, investors will compete on price, bidding up those early-stage valuations and compressing future returns.
- chrisco255 8y agoSome of this can be attributed to the relatively few opportunities raising money last year. Some of it is due to uncapped raises, which should not be done, in my opinion.