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This is based on the observation that the valuation "...doesn’t accurately reflect the preferred treatment some investors might get, the researchers say." Whic
by personjerry 8y ago
This is based on the observation that the valuation "...doesn’t accurately reflect the preferred treatment some investors might get, the researchers say."
Which is irrelevant if the unicorn does well enough anyway.
- hodgesrm 8y agoThat's not really the point of the article. It's saying that multiplying share price from the last round by all outstanding shares overvalues the company. The effect is increasingly relevant the further back in line you are for payout.
- jiveturkey 8y agoi don’t think that’s correct, in that you (and the article) is lacking nuance. the “valuation” is different for every investor. in fact for preferred shares the value may be accurate. but for common shares it is not. before a company goes public, there isn’t a single valuation. there’s a set of valuations.