Mutual fund manager T. Rowe Price marked down its investments in several private tech companies in the fourth quarter of 2015, including cutting the carrying value of its stake in Dropbox by 51%.
T. Rowe valued its Dropbox investments at $9.40 a share as of Dec. 31, according to portfolio holdings reports it released last week, down from the $19.10 paid by investors in Dropbox’s last fundraising in 2014. That round valued the company at $10 billion.
Gilt Groupe Is a Cautionary Tale for Startup Employees Banking on Stock Options – A $250 million acquisition probably sounds like a lot to many employees of privately held companies. But for startups backed by big venture capitalist money, even a deal that big can be a financial bloodbath for employees. Worthwhile reading for employees, management and investors.
In Silicon Valley Now, It’s Almost Always Winner Takes All – Most competition in Silicon Valley now heads toward there being one monopolistic winner. And that is why it is hard not to see that, right now, the only competition that matters in ride-sharing is between the two largest companies: Uber and Lyft.
General Motors, Gazing at Future, Invests $500 Million in Lyft – Uber, Lyft’s largest and most formidable rival, has raised more than $10 billion to date, and is valued at $62.5 billion, about 14 times Lyft’s new valuation.
Common Stock Ownership Spreads Among Start-Up Investors – When institutional investors put money into companies backed by venture capital, they typically end up owning preferred shares. Now, institutional investors are also becoming owners of common shares. The competition among investors to get into hot start-ups has been so fierce that many hedge funds, sovereign wealth funds, and others have been unable to participate when the up-and-coming companies sold preferred shares.