Unprecedented Money Going into Unproven Companies: Columbia's Sherman

Unprecedented Money Going into Unproven Companies: Columbia's Sherman

Assessment

Interactive Video

Business

University

Hard

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The video discusses the trend of inflated valuations in private markets, particularly in tech startups attempting IPOs. It highlights the concept of blitzscaling, where venture capitalists invest heavily in unproven business models, leading to potential failures. SoftBank is identified as a key player in this trend. The video also examines market reactions to overvalued IPOs, with many companies trading below their initial prices, indicating a disconnect between private and public valuations.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways can excessive funding lead to a higher risk of failure for startups?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the speaker imply about the sustainability of business models in companies that have received significant venture capital?

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