Mutual fund private startup valuation marks are based purely on sentiment
Garry Tan · 20VC: Garry Tan on The Biggest Takeaways From Advising 700 Companies @ Y Combinator & Why Now Is The Golden Age For The Early Stage? · Dec 14, 2016 · at 26:49
Garry Tan criticizes late-stage venture capital pricing mechanisms when explaining why Initialized Capital invested in the Long-Term Stock Exchange.
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“We're more or less at the worst possible scenario right now. We have no information rights, no liquidity. Valuation committees at Fidelity and BlackRock basically get to mark things up and down with no information, so it's basically all sentiment.”
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