MAKING SENSE OF VC VALUATIONS - A GUIDE FOR THE PERPLEXED
In the startup ecosystem, VCs are the cock of the walk. They're at the top of the pecking order because they are the ones with all the money. All investors aspire to become VCs because they are the big boys - the alpha males who have the financial firepower to back unicorns , and become amazingly rich in the process.
VCs are thought of being the super-smart whiz kids, who identify the next Googles and Facebooks of the world. They are wined and dined; and invited to all the startup conferences to give the keynote speeches. After all, if they are so rich, they must be very bright ! Everyone wants to understand their perspective and benefit from their insights.