recently, whether online or offline, IT company’s share price plummeted phenomenon in discussion can be heard without end. In fact, it is a very difficult thing to determine the exact value of a company, it requires you to the company’s future growth, competition and the final realization of whether there is a certain profit.
last quarter, venture capital circles in two major events. The first thing is, such as LinkedIn and Twitter and the world famous IT company shares suffered heavy losses; the other one is the well-known investment institutions, but also Snapchat investors Fidelity Investments (Fidelity) significantly reduced the investment of the company’s valuation.
in fact, most years in the investment industry investors foresaw the rational valuation of this trend, and in the past two years in private exchanges this thing.
I hope that through this article, I will try my best to explain what happened. Because I heard from some entrepreneurs in the mouth of the valuation of the reasons for the decline is mostly wrong, and even reminds me of the time when the 1997-2000 scene.
VC their true aspirations
recently I contacted nearly 150, at various stages, investment from different areas of the investment community friends, asking how they perceive the market this year, what are the best words to express your present mental state. As you can see from the chart, the percentage of caution and optimism is 82%:18%.
special reminder: These data are anonymous, these are the real idea of investment people, and no one is deliberately distorted their ideas to vote.
This negative result is not Weakness lends wings to rumours.
. Most of these investors are investing in companies that are now very high in value but are not yet listed. These companies either now or in the future will need wind financing. 61% of investors said that in the last quarter of, there has been a decline in the valuation of the company. 91% of investors said they hope that in the first 6 months of this year, valuations continue to fall (of which 30% of investors want to decline in valuation).
have to stand up and talk about it
over the past few years, especially in the last two years I have been soaring valuations, continue to express my concern.
however, with it bothers me, is the following evaluation from Twitter: "VC wants to lower valuations it"; "this is certainly a good thing for VC, the entrepreneur is not necessarily"; "the valuation down, Mark can be more profitable"; "indeed, valued in decline. But this is the VC who made a ghost, they want to make their predictions come true".