

Tech startups: The lure of the big number - yarapavan
http://www.economist.com/news/business-and-finance/21651136-true-unicorns-are-still-rareeven-magical-world-technology-lure-big-number?fsrc=scn/tw_ec/the_lure_of_the_big_number

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yarapavan
If a public company loses half of its value, investors lose half of the money
they put in, he explains. But should this happen to a unicorn, investors may
not lose anything—as long as the total value of the firm does not fall below
the amount protected by the liquidation preference.

