[riggins]

You have to keep in mind the source. Let me put it this way. A VC's job is to buy X (where X is equity in a startup). Of course every VC would love for X to go on 50% sale ... or even better 75% sale.

You saw this with hedge fund managers and the stock market as well. Lots of hedge fund managers went on and on about how irresponsible Bernanke was because he kept interest rates low which raised asset prices.

To be clear, I don't think this is a nefarious or even conscious process. However, I think if someone really wants a particular scenario it tends to color their thinking.

Also the actual claim made isn't as sensational as the headline. Just says that 90% might take a lower valuation. All that requires is a general market decline.

Anyway, take a look at the list of unicorns.

http://graphics.wsj.com/billion-dollar-club/

[marcosdumay]

Eh, a VC job is also to sell the same X some months later, for a much higher price.

If the buying price of Y goes on a 75% sale, while the selling price of 10Y also goes on a 75% sale[1], the VC makes 75% less money.

[1] Things usually don't go that way. Smaller prices tend to fall less than big prices, and the VC will almost certainly get into the negative.

[jacquesm]

Buying lower means a lower exit is required to get the same multiple. So buying lower is always better for a VC. Worst case they make less money on the same multiple, better case they make a much higher multiple. It's all about the rate of return, not the actual amount (assuming the amounts are still worth the effort of investing, obviously there are some lower bounds here).