"an Illusion of Value"

Nick Bilton in the Times:
"'It serves the interest of the investors who can come up with whatever valuation they want when there are no revenues,' explained Paul Kedrosky, a venture investor and entrepreneur. 'Once there is no revenue, there is no science, and it all just becomes finger in the wind valuations.'" 
"When small start-ups I’ve spoken with do make money, they often find it difficult to recruit additional investment because most venture capitalists — and often the entrepreneurs they finance — are not interested in building viable long-term businesses. Rather, they’re interested in pumping up enough hype and valuation to find a quick exit through an acquisition at an eye-popping premium."

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