Jason M. Lemkin argues struggling venture investments should be marked down about 50% unless a company is nearly out of money. He criticizes how funds overvalue their portfolios and says NAVs should move like public markets, not stay artificially inflated.
I want you to just mark down by half it to zero. Unless it's running out of money. Just mark it down by half.
I'm not suggesting market to zero. But mark it down by half is a lot like. That's correct.
The market goes up and down too. Why shouldn't our funds go up and down?
Fair. But is that Directionally correct? No. 50% markdown is. Is like directionally.
Incorrect.
It's a severe markdown.
Listen, I only have 10 years of experience in venture, okay? But what I do believe is that the way we've done markups, especially for smaller and other funds, has completely corrupted the industry.
