
How Valuable Is a Unicorn? Maybe Not as Much as It Claims to Be - adventured
https://www.nytimes.com/2017/10/16/business/how-valuable-is-a-unicorn-maybe-not-as-much-as-it-claims-to-be.html
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huac
If you're interested in learning more, I'd strongly recommend "Venture Capital
and the Finance of Innovation" by Andrew Metric and Ayako Yasuda.

I used this book in a VC finance class (taught by a student of the prof in
this article, incidentally) and found it very readable and helpful for
understanding option valuation. Then again, when I was interviewing, companies
wouldn't tell me anything about share pricing or the associated covenants, so
it was kind of a wash from an employee perspective.

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haltingthoughts
Why do early investors agree to invest knowing that the future rounds will get
preference? Tragedy of the anti-commons is a thing but you'd assume that
existing investors would push back against this type of behavior.

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acchow
A great example of a recently triggered ratchet was in Square's IPO:

[https://blogs.wsj.com/digits/2015/11/18/square-
pays-93-milli...](https://blogs.wsj.com/digits/2015/11/18/square-
pays-93-million-penalty-to-some-investors-in-ipo/)

