Silicon Valley billion-dollar valuations are inaccurate, says Elad Gil

Henny
Ray Abrams/AP

• Former Twitter vice president and longtime Silicon
  Valley investor Elad Gil has recently written a book about
  late-growth companies called High Growth Handbook.
• Gil suggests company founders should approach high
  company valuations with caution, and says Wall Street thinks
  about value very differently from venture
  capitalists. 

Former Twitter vice president and longtime Silicon Valley
investor Elad Gil has spent a lot of time considering what drives
a company’s value. He’s recently written a book dedicated to the
subject of company growth, called “High
Growth Handbook,” which details how a growing company can
retain great leaders, manage its resources effectively, and
maintain its value longterm. 

One of his key pieces of advice deals with how leaders of growing
companies think about their business’s value.

According to Gil, it’s typically not in a company’s best interest
to over-optimize value.

He writes, “When a founder has a multi-billion-dollar valuation
two challenges arise: …

Sponsored: 


If you enjoyed reading this story so
far, why don’t you join Business Insider
PRIME? Business Insider provides visitors from MSN with a
special offer.  



Simply
click here to claim your deal and get access to all exclusive
Business Insider PRIME benefits.