the power of imagination and optimism is an amazing and essential part of innovation. But over the years, we’ve become so enamored with the unicorn valuation as the goal, that we started valuing the wrong things and overlooking the fundamental physics of business.

With capital at zero cost, growth at all costs became the mantra. How fast can you gr... See more

There are losses for hedge fund investors with large public portfolios at high-cost bases. An early-stage company whose public holdings fall 25% in value feels less pressure than a crossover firm when its portfolio falls from an 8X multiple-of-money to a 6X multiple-of-money. Public securities of such firms are underwater, and private holdings are ... See more

And reset they must. When you look at how much median valuations were driven up in the past 5 years alone it’s bananas. Median valuations for early-stage companies tripled from around $20m pre-money valuations to $60m with plenty of deals being prices above $100m.