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Shira Ovide

Mind the Gap in Tech Startup Valuations

Everyone thinks they're different. That's often not the case.

Silicon Valley can sometimes feel like Lake Wobegon, the fictional town where all children are above average. 

All technology startups say they're doing something fundamentally different from any company that came before and deserve higher valuations as a result. WeWork Cos. doesn't want to be valued like a company that sublets office space, although that's what it is. Uber Technologies Inc. doesn't want to be valued like a taxi or car service company because its ambition is to be taxis, rental car companies, public transit and FedEx rolled into one. And Wish doesn't want to be valued with the typical tiny revenue multiples of e-commerce firms.