Private company valuations of companies based in VC are far than companies outsi... | Hacker News

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		grimlck on April 18, 2014 \| parent \| context \| favorite \| on: Employee Equity Private company valuations of companies based in VC are far than companies outside the valley, even with the same revenue/profit/growth potential. It sucks and doesn't make economic sense, but that is what I observe

spo81rty on April 18, 2014 [–]

Only because the costs of doing business are higher, not because the potential of the company is higher.

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