The reason prices are determined this subjectively is because information is incomplete.
That is every market ever. No entity makes decisions based on perfect information - but plenty have a process that is auditable and lays out the assumptions.
If information was better then there would already be useful standards.
I think whatever standard or process we did come up with would be more refined/accurate with more information - but I that doesn't preclude having something that can be audited.
I'm not saying that the process would spit out the "right" valuation, because that is impossible to tell prior to a liquidation event. What I am saying is that the process for determining valuations needs to be 100% more transparent. Like it or not there is a process - maybe it's all in one principle's head, but it's there.
That is every market ever. No entity makes decisions based on perfect information - but plenty have a process that is auditable and lays out the assumptions.
If information was better then there would already be useful standards.
I think whatever standard or process we did come up with would be more refined/accurate with more information - but I that doesn't preclude having something that can be audited.
I'm not saying that the process would spit out the "right" valuation, because that is impossible to tell prior to a liquidation event. What I am saying is that the process for determining valuations needs to be 100% more transparent. Like it or not there is a process - maybe it's all in one principle's head, but it's there.
We as founders need to know what that is.