Uber’s car-wreck IPO could change Wall Street’s thinking about its ‘unicorns’

As Bloomberg’s Matt Levine, a former investment banker, points out, private markets don’t have a real-time referee similar to the public markets’ moment-to-moment price quotes, so it’s easy to inflate their valuations. If investors sour on a public stock, that’s instantly visible in the price. In the private markets, he writes, “if demand cools you just don’t raise more money and there’s no evidence of a lower price.”