Re:Paul Graham's Letter to YC Companies
by hef19898 on Tuesday June 05, 2012 @02:01AM
(#4067550)
One reason why the FB IPO can drive down valutions can be the following:
When VCs are worried that they won't ever get a multi-billion dollar IPO to cash in and thus generate returns they will be forced to get the same junk of any given start-up for less money in order to create the the same return factor.
When VCs are worried that they won't ever get a multi-billion dollar IPO to cash in and thus generate returns they will be forced to get the same junk of any given start-up for less money in order to create the the same return factor.
Anyone correct me if I'm wrong.