Source item

Quoted context

These are the quoted author’s words.

There are 12 venture-backed companies that raised >$3B in private markets and then listed in the US. Only one that has a positive return today, relative to the S&P 500's performance over the same period. Most are deeply negative (aggregate -117%). Only two that were positive at lockup expiry, neither stayed that way. The high cost of private capital means the companies that raise the most, and stay private longer, are almost inevitably overvalued as insiders raise the price of funding events aggressively to stay NPV positive.

credistick ↗