A new study cited at Techcrunch by Ilya Staebulaev found that “One in 10 unicorns is overvalued by at least 100 percent, and on average a unicorn reports a valuation 50 percent above the fair value, citing the problem of post-money valuations.
“The common shares are overvalued by 58 percent on average, and for almost half of unicorns “fair valuation” dips below the billion-dollar threshold.”
“Whether or not we will see a crash on anything like the scale of the bursting of the Dot Com bubble is similarly difficult to say with certainty, depending as it does on which dominoes fall first and how hard investor confidence is hit. But suffice it to say, there will be some major casualties.” -IS
Reference: Gornall, Will and Strebulaev, Ilya A., Squaring Venture Capital Valuations with Reality (February 27, 2018). Stanford University Graduate School of Business Research Paper No. 17-29. Available at SSRN.
Quote of the day: “You never know what is enough unless you know what is more than enough.”-William Blake
Max, your brothers and sisters in private aviation we were waiting on an article on the Tax Act impact.
Larry, I did not get around it. Brothers and sisters, owners and pilots, you got your summary review at BCA