‘UNICORNS’ BUCK:Private companies valued at over US$1 billion are expected to slash their values next year as market trends move away from sky-high valuations
Date: Nov 08, 2015
By: Reuters, SAN FRANCISCO
Square Inc’s initial public offering, priced at a 30 percent discount from the payments and lending company’s private valuation, is one of the loudest signals yet that technology firms are struggling to keep their multibillion-dollar market caps.
While some of these “unicorns” — private companies valued at US$1 billion or more — are set to buck that trend, bankers expect a procession of others to have to cut their values over the next year.
Investors have begun to price private companies more consistently with the public market, which has taken a more conservative approach to valuation. [FULL STORY]