Distilling Venture Capital

UNICORN MANIA, The Real Facts About Post-Money Valuation Post-Money Valuation; The Facts It is absolutely NOT the market capitalization or market value of a tech unicorn company; PM Valuation completely ignores all the prices paid, preferences, and rights granted, for ALL prior rounds – a major flaw and a farce; Thus, a completely distorted picture of value is created by actually assuming that all of these past preferred rounds of equity, plus common, are all magically worth the same price as the round just completed.  This is insanity; To make matters worse, The derivation of the PM Valuation is cloaked in secrecy – it´s a black box - you don´t get to see the calculation! Remember, from the Stanford Study, ALL 135 Unicorn companies evaluated were overvalued using the PM Valuation AND, 65 lose their Unicorn status!   This is a ‘Houston-we-have-a-problem’ moment.  If these statistics aren’t an indicator that something is terribly wrong with the PM Valuation...well…then you are in Unicorn land.   A Unicorn In