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There's a big problem with the way Silicon Valley values billion-dollar companies, says longtime tech investor

Business Insider   

There's a big problem with the way Silicon Valley values billion-dollar companies, says longtime tech investor
Tech1 min read

  • Former Twitter vice president and longtime Silicon Valley investor Elad Gil has recently written a book about late-growth companies called High Growth Handbook.
  • Gil suggests company founders should approach high company valuations with caution, and says Wall Street thinks about value very differently from venture capitalists.

Former Twitter vice president and longtime Silicon Valley investor Elad Gil has spent a lot of time considering what drives a company's value. He's recently written a book dedicated to the subject of company growth, called "High Growth Handbook," which details how a growing company can retain great leaders, manage its resources effectively, and maintain its value longterm.

One of his key pieces of advice deals with how leaders of growing companies think about their business's value.

According to Gil, it's typically not in a company's best interest to over-optimize value.

He writes, "When a founder has a multi-billion-dollar valuation two challenges arise: ...

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