Valuations in private markets have gone through the roof to a point where I had to look for the definition of Unicorn because I had forgotten if it referred to companies above $1bn or $10bn.
It seems the term was coined by Aileen Lee in 2013, when there were 39 startups founded since 2003 which qualified as Unicorns. Latest data I have found: 631 (16x in 7 years). How many UberUnicorns today (>$10bn)? 32.
Three comments on this:
1. It is a disgrace that only wealthy people and qualified investors can invest in private markets vehicles (VC, PE). You can go to fucking Codere to squander your salary or trade CFDs but you cannot invest in start-ups.
1. It is a disgrace that only wealthy people and qualified investors can invest in private markets vehicles (VC, PE). You can go to fucking Codere to squander your salary or trade CFDs but you cannot invest in start-ups.
2. Governments, arguing that they are protecting the average citizen, are instead preventing them from accessing the areas where the majority of economic value is generated these days. Unfair inequality artificially created by regulation.
3. With these valuation numbers I understand why VCs invest in poor businesses so many times. Nobody is going to fire you if your company goes to 0, but if you miss a Unicorn (which start to be very common) you’re out. And if you catch one early enough, you’re done for life too.
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