VC Valuations Out Of Line

from the catch-up-time dept

Too many venture capitalists are ignoring the real valuation of their portfolio investments (mostly not very high and not going anywhere). Since the valuations of their companies are always questionable, VC firms usually don’t update the official valuation of their portfolio unless there’s a clear change in valuation (raising a new round, getting sold, going public). However, it’s obvious that many companies they previously invested in at high valuations are worth much less – and it’s going to hurt the VCs when that info comes out. A few VCs, however, are being more honest and trying to estimate the real value of their funds.

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