Thing is, that valuation is kind of based on vibes. If people get less enthusiastic about them (or just the sector in general), that valuation will go down. Their ability to raise money off it is limited.
Yeah it takes awhile for investors to start actually valuing things, they usually 'price' them which is mainly driven by mood and momentum.
Given that pricing is the name of the game, all should be wary of what interests founders and their employees who are paid via stock based compensation...
Given that pricing is the name of the game, all should be wary of what interests founders and their employees who are paid via stock based compensation...