Protections for Late Investors Can Inflate Start-Up Valuations
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Aaron Levie, left, the chief executive of Box, celebrating with his co-founder, Dylan Smith, center, at the New York Stock Exchange during their initial public offering in January. Box offered stock protections, also known as structuring, to two venture investors. CreditRichard Drew/Associated Press
Warning: Some unicorns may be smaller than they appear.
The recent proliferation of so-called unicorns — start-up technology companies valued at more than $1 billion — has been greeted variously as a sign of healthy innovation or an indication that valuations have become dangerously overheated.
Led by the likes of the car-hailing service Uber at $41 billion and the home-rental website Airbnb at $10 billion, the global ranks of unicorns have more than doubled, to 102, over the last 15 months, according to PitchBook Data, which tracks private financial markets…
Protections for Late Investors Can Inflate Start-Up Valuations
