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As an investment firm you specify what you current investments are valued at, up or down from time to time. When the company is public its just the stock price
by poniko 4y ago
As an investment firm you specify what you current investments are valued at, up or down from time to time. When the company is public its just the stock price but as private it's more of the precived value, that can also differ from one firm to another holding the same paper. So in short they say their investment now is half the value compared to when they put money in. In 6 months they can reevaluate and say the value is xx amout more again.
- braingenious 4y agoSo this is strictly the value of their investment and not reflective of their assessment of the business as a whole? How exactly does that work? Is it like if I bought a stake in a bag of apples but only my apple went bad?
- everforward 4y agoIt's reflective of their assessment of the business as a whole. That number is basically "what we think Twitter as a whole is worth * the percent we own". They think Twitter as a whole is worth half as much, so they're marking down the value of their shares.
- braingenious 4y agoThank you, that actually makes sense.