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While there’s lots to complain about this practice, those aren’t really the same thing. Tech firms are losing cash but generally gaining value towards an IPO. W
by throwaway66920 7y ago
While there’s lots to complain about this practice, those aren’t really the same thing. Tech firms are losing cash but generally gaining value towards an IPO. Whereas the investments were simply losing value.
- Supermancho 7y ago> It was one of the most spectacular business failures of the last few decades, losing $4.5 billion in value. > Tech firms are losing cash but generally gaining value towards an IPO. ...but they don't always. This makes the original statement sensationalist nonsense as it's happened multiple times (over the time period mentioned). Valuation is screwed up in both "types" of businesses, but the methodology is irrelevant to the claim when it's apples to apples for the market.