Unicorns arent real, and neither are the valuations ascribed to many of the startups that say theyre worth $1 billion or more.
About half of private companies with valuations exceeding $1 billion, known as unicorns, wouldnt have earned the mythical title without the use of complex stock mechanics, according to a study by business professors at the University of British Columbia and Stanford University. The tools used to negotiate a higher share price with investors often come at the expense of employees and early shareholders, sometimes drastically reducing the actual value of their stock.
The chasm between public and private valuations is a topic of increasing prominence following several disappointing listings. Among them is Blue Apron H…
Read the full article at: http://fortune.com/2017/08/02/unicorn-startups-overvalued-stock/