The curious case of slick start-ups that tout billion-dollar valuations then rapidly collapse

Prof Sumit Agarwal, Low Tuck Kwong Distinguished Professor at NUS Business School, observed that the tech industry is littered with examples of start-ups that became the darling of the moment, drawing multi-billion dollar valuations, yet months later collapsed into nothing. He cautioned against getting caught up with the hype of soaring valuations and blind faith. Instead, one should look at fundamental factors in determining value, such as a firm’s business model or its capabilities to grow revenue.

• CNA Online, 8 April 2019