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Valuation

Thiel private-valuation paradox

The power of planning explains the difficulty of valu ing private companies. When a big company makes an offer to acquire a successful startup, it almost always offers too much or too little: founders only sell when they have no more concrete visions for the company, in which case the ac quirer probably overpaid; definite founders with robust plans don’t sell, which means the offer wasn’t high enough. ~ Peter Phiel

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