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FEB 22, 2013 - Business Insider

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DOWN ON STARTUPS: What Happens When No One Thinks You're Worth Billions Anymore

As startup prices soared in the runup to last year's Facebook IPO, entrepreneurs, investors, and tech observers sometimes griped about lofty valuations. Just mention Foursquare, say, or LivingSocial, and they'd go off. These are tech companies that snagged a lot of press and tens (or hundreds) of millions of dollars before solidifying their business models. Investors say they're worth tons of money—but in the end, that's a gamble, and the companies may actually be worth nothing. After a few years of massive hype in the startup sector, absurd-sounding valuations are starting to correct ... Read More

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