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To: Elroy who wrote (57333)6/8/2015 8:27:01 AM
From: Glenn Petersen  Read Replies (1) | Respond to of 57684
 
I think that the author is trying to make the point that the protection artificially inflates the reported valuations, and that when you factor in the protection, the actual valuations are lower. It helps late-stage companies of having to bear the stigma of a down valuation before they IPO. Smoke and mirrors.

The protection is being given to the late-stage investors, not the early-stage investors. I would rather see the early-stage investors protected.