Slumping valuations for once-hot technology companies after they go public are drawing increased scrutiny from U.S. regulators, Bloomberg News reported yesterday. Securities and Exchange Commission Chair Mary Jo White expressed concerns that some stock brokers may be painting too-rosy a picture of private tech companies. Anytime there is a “significant” change in how much a company is worth after an initial public offering, it raises questions about the impact on investors who purchased unlisted shares, White said yesterday. White’s comments come as more investors are trying to figure out ways to pour money into Silicon Valley companies that are staying private longer. While startups face few obligations for what they must disclose about their finances, their shares are being marketed to people far less versed than venture capitalists on how to value startups. Read more.
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