It’s a supremely interesting—and confusing—time in private tech investing. Companies like Uber are poised to set record-breaking valuations of $50 billion-plus, and there are lots of high-performing private companies right behind them.

But caution abounds. Companies are trying to justify valuations based on very fuzzy metrics. I recently heard about one company trying to justify its price based on expected 2017 run rate. The strong companies are hoarding cash; the weaker ones are starting to scout the exits.

We’ve written about the risks in the private markets from numerous angles and will have a lot more to say and stories to tell in the coming months. But I thought it would be useful to lay out some of the continued misconceptions.