The market is in a “downturn”, and this is percolating into the venture-backed startup ecosystem. The broad consensus is that the top end of startup valuations are coming back to reality. But what does this mean? What makes a valuation out of this world? And how does this affect employees1? Startup valuations are determined by the amount of money a company raises in exchange for a percentage of ownership. Usually2, this is a 20% stake, meaning that a company that raises a $15M Series A is...
