Valuing Venture Capital Firms: A $5.5B Unicorn Analysis

Tomasz Tunguz analyzes the venture capital industry through the lens of private equity firm valuations, drawing parallels between PE's evolution and VC's trajectory. He develops a linear regression model based on PE multiples to estimate that a $50B AUM venture firm could be worth at least $5.5B upon going public, suggesting VC will increasingly professionalize and diversify into multiple product lines.