However, to the extent that high ex post risk premiums result in high valuations, they do suggest a low ex ante premium.This works in two ways.
The most important factor by far in high valuations is public policy.
Seed funds can become hostages in high-valuation companies otherwise.
To Sean and Jim's point, more people are starting their own startups instead of joining others, which is spreading out the talent pool in Silicon Valley and this flood of fresh capital is resulting in investor competition to invest in startups, resulting in higher valuations and speedier funding cycles.
Having this cash on hand affords these companies a bit more time and runway should they need it, and gives them some negotiating leverage when talking to larger investors who are keen to invest, sometimes resulting in higher valuations that venture capitalists have to compete against.
Kuehl, Shriver, Duran and Ulich said they support a "split-roll" update that would leave current law in place for residential properties but phase in higher valuations on commercial land.
No longer will Liverpool approach a transfer target feet first, elbows swinging; if Fulham persists in its high valuation of Dempsey, he will probably not end up in Liverpool.
Artists on this year's Turner shortlist may hate the thought that they are YBAs but they really are, in their high valuation of youth and pop.
"They will go in with a high valuation and say 'I am spending a fortune on advertising and will get you the best price'.
I would also exercise caution when it comes to investing in startups at high valuations.
"Tencent value has gone way up — enabling them to buy startups and invest in startups at high valuations and push the tech community," said Bell. "Investors see all this going on — and pour money in".
