Are massive valuations just a marketing ploy? Are VCs letting these late stage companies pick the valuation as long as the company agrees to their terms? These unicorns become media darlings because of their astronomical valuations; it seems like lipstick on a pig. Bill Gurley is right in this blog post from TechCrunch, there is a lack of due diligence and the cycle will continue to produce the overvalued company, they will go through the “financial root canal” with their S-1, and we will all wait for the next unicorn to dance across our screens.
Read the full article: Startups, Late-Stage Valuations, And Bull | TechCrunch.