Entrepreneurs need to resist the temptation of 1 billion valuation clubs: quitting to be a problem

It is a dream for a lot of entrepreneurs to get a 1 billion-dollar valuation of a company that they created. But is the valuation really good for startups themselves? The answer is not necessarily. Nick Bilton, a famous tech columnist for The New York Times, gives 5 reasons: once your start-up company enters the 1 billion dollar valuation club, it's not easy to get out of a safe exit. This high valuation will lead to a significant reduction in the probability of a company being acquired, At this time can buy your company may only Google, Microsoft, Apple, and Facebook. After valuing more than 1 billion dollars, you will face more severe challenges in terms of execution. If a start-up company is overvalued, it is likely that the next round of valuations will be priced at a price that is overvalued, will lead to a decline in the attractiveness of talent because it means there's not much chance for new hires, Nick Bilton in the article, said that the current 1 billion-level start-up companies have been more and more, according to some of the public data, the current valuation of 1 billion U.S. dollars of start-up companies are: · Twitter:85 billion · LIVINGSOCIAL:50 billion · DROPBOX:40 billion · SQUARE:32.5 billion · Spotify:30 billion · Rovio:30 billion · AIRBNB:25 billion · Pinterest:15 billion · Box:12 billion · Gilt groupe:11 billion dollars · Evernote:10 billion in addition to this list, other companies such as Foursquare, WordPress, GitHub, Quora and Fab are close to $1 billion trillion in valuations. With their valuations already high, the list of buyers ' markets is very limited, as mentioned above for Apple, Google, Microsoft and Facebook. Apple has fewer acquisitions, leaving only Microsoft, Google and possibly Facebook. Facebook's share price has been poor since its IPO, so the likelihood of its takeover has also been greatly reduced. So, while it is the dream of most entrepreneurs to make themselves a 1 billion-dollar venture, it may not be entirely good.