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3 lies VCs tell ourselves about startup valuations


Scott Lenet

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Is there a creed in venture capital?
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I’m frequently asked by journalists whether I think venture capital valuations are too high in the current environment.
Because the average venture capital fund returns only 1.3x committed capital over the course of a decade, according to the last reported data from Cambridge Associates, and 1.5x, according to PitchBook, I believe the answer is a resounding “yes.”
So when entrepreneurs use unicorn aspirations to pump private company valuations, how can investors plan for …

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