You may well have heard talk recently about Facebook’s £33bn valuation and similarly high valuations for other private companies on SecondMarket.
I’m writing today to share a few thoughts on why we need to be careful
with these numbers, but before I go any further, I want to make the
point that I think Facebook is a fantastic business with good prospects
which has done a great job of innovating beyond their initial product.
Similarly, I think SecondMarket provides a valuable service and it is
helpful for small shareholders in private companies to be able to sell
their shares before larger shareholders are ready to exit, particularly
for companies on the IPO track who are waiting much longer than they
used to before listing.
To read the full, original article click on this link: Facebook’s valuation | The Equity Kicker
