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as27

Re:ADP Sues Zenefits for Defamation on Wednesday June 10, 2015 @03:08PM (#9694559)
How do you know?
Yes its a signaling game in the short run. But is there a point when people realize the company has been overvalued?
What about up rounds?
Inflating a valuation by 50% to 100% over "fair market value" means that the company will have to grow by 50% to 100% to grow into it's own shoes/expectations.

Holding all else equal, if future investors value the company at fair market value A16Z will have over-paid to get into the round.

If this is true then what is A16Z's angle? Do they believe that overpaying is a cost they are willing to incur to get the best deals and concentrate talent in their portfolio? Does this concentration of talent make up for a company's overvaluation? Ie: does a 100% overvaluation with A16Z lead to a greater than 100% company growth compared with other investors?