Art by Ben Rosen.
Venture Capital

VCs Face Questions on Valuation Gap

By  |  March 8, 2016 7:00 AM PST
Photo: Art by Ben Rosen.

As mutual funds continue to mark down the value of their private tech holdings, venture capitalists say they are facing more questions from their investors about how they are valuing the same companies on their books.

The VCs predicted that mutual funds markdowns could start to pressure their own valuations if firms were found by investors to be consistently above or below mutual fund pricing. There also may now be a higher bar to justify valuations that are dramatically different, they said.

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