With capital becoming costlier as central banks try to rein in inflation, loss-making start-ups face a completely different environment today, than they did a year back. Prices of start-ups that are listed on the stock markets over the last two years have collapsed by 50-70 per cent over the last few months. The decline in the valuation of previously private start-ups that are listed on public markets is indicative of the frothy valuations in the private space. For instance, several technology companies that listed on the Indian bourses last year have lost more than half their value since listing.
Will the Froth in Private Markets End Now?
Will the Froth in Private Markets End Now?
Will the Froth in Private Markets End Now?
With capital becoming costlier as central banks try to rein in inflation, loss-making start-ups face a completely different environment today, than they did a year back. Prices of start-ups that are listed on the stock markets over the last two years have collapsed by 50-70 per cent over the last few months. The decline in the valuation of previously private start-ups that are listed on public markets is indicative of the frothy valuations in the private space. For instance, several technology companies that listed on the Indian bourses last year have lost more than half their value since listing.