Why Silicon Valley Loved Uber More Than Everyone Else

Uber is now a massive, publicly traded company. Anyone can buy Uber shares at a valuation of about $70 billion. This isn’t bad for a company losing billions of dollars a year, but it’s a fraction of the $120-billion valuation the IPO’s bankers initially floated. It’s roughly what private investors valued it at three years ago, when the company made $7.43 billion less revenue.

That is to say, there’s a large gulf between how venture capitalists saw the company and how a broader set of investors on the public market see it. Journalists and analysts have tried to explain this yawning gap. Maybe it’s because Uber stayed private too long, or because Lyft messed up ride-hailing IPOs, or because the timing was bad, or because the long has tarnished the brand. With $50 billion on the table, there’s plenty of blame to spread around.