How We Should Bust an Investing Myth
WeWork’s postponed IPO shows how hollow the narrative about the superiority of private markets can be.
Are “unicorns”—those startups already worth more than $1 billion in the private market—overvalued? Yes, said 91% of venture capitalists who don’t have any unicorns in their portfolio. And yes, said 92% of the VCs who do.
my latest: The lesson from WeWork: The supposed brilliance of the private market may have been overstated.
"Markets work best when they are both deep and wide, integrating sharp differences of opinion from many people into a single price at which investments can trade. Private markets, however, are shallow and narrow, despite their enormous size."
I understand the desire to pile on WeWork, but when the chart shows 80% (21/26) of unicorn IPOs have gone up in value over last 2 years, shouldn’t the title and conclusions be positive? 🤷🏻♂️