Square's Lower IPO Valuation Casts Shadow Over Startups
- Value sought in market debut drops below last funding round
- IPO adds to concerns of potential tech valuation bubble
Square's IPO Price of $11-$13: Why the Lower Valuation?
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Square Inc.’s initial public offering is the latest evidence that startups are attaining lofty valuations in private funding that will be hard to sustain once they reach public markets.
The mobile-payments provider is seeking a market valuation of as much as $4.2 billion in its trading debut, a significant cut from the $6 billion the company sought in its last funding round in 2014. This is fueling concerns that there’s a wide -- and expanding -- gulf between between how private investors and public markets value companies.