Where does VC go from here?

At the height of the market last summer, I got a call from two first-time entrepreneurs. Their company had less than $5 million in annual revenue, yet they were raising at a billion-dollar valuation. As an entrepreneur myself, I get how hard it is to build a new business from nothing, and wanted to support them in their journey – but I had to pass at $1 billion. Even though there were numerous deals getting done with similarly sized companies, it seemed silly. Three weeks later, I learned that they’d been funded at that valuation (by Softbank, no surprise).