3 ms·
> It does create a misrepresentation of the valuation So the harm is that some massive VCs with billions of dollars to spend on their investments, might be a b
by stale2002 3y ago
> It does create a misrepresentation of the valuation
So the harm is that some massive VCs with billions of dollars to spend on their investments, might be a bit more confused about what someone else's "real" valuation is?
They are qualified investors. I think they can do the work on their own to correct it to the "real" valuation.
- dimask 3y agoThis is beyond the point, these practices cause economic bubbles and when such bubbles grow too much eventually they pop and a lot of other people pay the price.
- stale2002 3y agoOther firms who think that the price is too high could simply.... not invest in those companies. I am not sure what is confusing about this. If a company is too expensive, the qualified investors who are spending their investment dollars are free to not buy equity in those too expensive companies. They manage billions of dollars! I am sure they can figure out how much a company is actually valued! They aren't going to be "tricked" by some valuation scheme that randos are pointing out in HN comments.