Lots of start-ups in Silicon Valley aren’t just getting rich on paper. They are cashing out, long before they get to the public market.
The New York Times recently published an article on the large number of Silicon Valley companies that are not publicly traded, but that are valued at $1 billion or more by their investors. That is make-believe wealth, as many people commenting on the story noted. A company only finds its total value if it is purchased, or has an initial public offering; everything else is a combination of its funding history, a best guess compared with its peers, and a little bit of hope.
To read the full, original article click on this link: How Frothy Is the Tech Boom? - NYTimes.com
