Agarwal, Vikas; Barber, Brad M.; Cheng, Si; Hameed, … - 2023 - This draft: April 20, 2023
We show that mutual funds report their junior stakes in startups at 43% higher valuation than model fair values that consider multi-tier capital structures of startups. The latest-issued and most senior security is worth 48% per share than junior securities held by mutual funds, implying that...