Abstract: the current valuation of many Unicorn companies are far more than the valuation of their listed. The open market has a lot of mutual feedback, but the private market has a number of powerful investors willing to invest in start-up companies. This means that startups can easily get high valuations."
November 18th news, according to foreign reports, the risk of investors, the world’s largest occupation of the social networking site LinkedIn co-founder Reed · Hoffman (Reid Hoffman) said on Tuesday, many of the current private start-up company’s valuation has reached billions of dollars. But among them, the valuation of many companies in the open market will not be recognized.
market research firm CB Insights data show that there are more than 140 start-up companies valued at more than $1 billion. Such companies are also known as the Unicorn company. Hoffman expects that in these companies, only half or even 1/3 can finally survive."
Hoffman in an interview with Bloomberg Television, said, many Unicorn company’s current valuation, far more than the valuation of their listing. The open market has a lot of mutual feedback, but the private market has a number of powerful investors willing to invest in start-up companies. This means that startups can easily get high valuations."
has been investing in mutual funds, hedge funds and other investors to invest in relatively popular startups, which have seen a surge in ipos. Because startups have been able to raise the same funds through financing and listing, and get a higher valuation, in view of this, the start-up companies now want to postpone the listing. The latest example is preparing for this week’s initial public offering of mobile payment company Square. According to the highest issue price, the company’s market capitalization of $4 billion 200 million, far below the company’s last round of financing last year, $6 billion valuation.
final round of financing
Hoffman said that he worked for Vc firm Greylock Partners is increasingly wary of the last round of financing startups. Startups often provide investors with some risk protection measures to lure investors into their final round of financing. In these protective measures, liquidation priority is the most frequently used means, which means that when the company first broke up, some large investors will be the first to get liquidated compensation.
Hoffman said, we have been strongly opposed to Greylock Partners investment companies do." Hoffman is currently a member of the board of directors of Airbnb, the privately held company’s current valuation has reached $25 billion 500 million. But Mr Hoffman said, "I don’t have the Airbnb estimate at all."