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Dave makes a very valid point, which is that the market is often illiquid. Pinterest and AirBnB have $1.5-2.5B valuations right now, but how quickly do you think they could find an acquirer at that price? Quora's last round priced them at $400M, but I bet you'd be hard pressed to find someone who's willing to buy them at that price in the next 3-6 months.


Investors who invest in a company at a valuation of a billion or more don't care about potential acquirers anymore, because an investment at that kind of valuation is a bet that the company will go public.




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