Startup valuations drop as exits are delayed and the stock market reprices tech

Fundings and Exits

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

The public markets are in turmoil as the economic impact of COVID-19 comes into focus; however, it is less clear what the impact of the changing value of public companies today will have on the valuations of private firms.

Startup valuations are impacted by a host of factors, one of which is the value of their public comparables (comps); if public comps lose value, private startup comps tend to earn lower valuations. This leads us to a key question: Are the stock market’s recent declines impacting the value of private startups?

To get an answer, TechCrunch spoke with Phil Haslett, the chief revenue officer at EquityZen. Haslett is a founder at the company, which helps owners of stock in private startups sell their shares to interested buyers. We were curious if there was a noticeable impact on prices so far and how demand might be shifting on both sides of its marketplace.

Public prices, private values

Articles You May Like

Ovni Capital is a new French VC firm backing startups with global ambitions
Apple TV users can now watch Major League Soccer matches with MLS Season Pass
OnePlus launches Buds Pro 2 with improved sound and noise cancelation at $179
Dotfile is a one-stop identity verification API for compliance purposes
Nothing’s second phone will take on the US this year

Leave a Reply

Your email address will not be published. Required fields are marked *