This credibility is what makes it possible to attract innovative startups. Constant turnover also results in high expenses for CVCs to continuously recruit staff members. When team members leave, the CVC loses their invaluable knowledge and their networks.
Wesley Chan, co-founder and managing partner at FPV Ventures, views this valuation tactic as a symptom of bubble-like behavior. “You can’t sell the same product at two different prices. Only airlines can get away with this,” he said.
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