The key thing here isn't about the fact that they are overvalued. It's more important to discuss the repercussions and what anyone is doing about it. It's not just Sillicon Valley, it's the startup scene all over the world.<p>How much is something really worth. Well how much is the next person willing to pay, that's really what this is all about. I've been down the road of VCs, exits etc... before and to be honest most of it is just fluff people make up, loop holes in the way things are valued, forget basic business and accounting they literally are making this up as they go.<p>Most VCs I feel have a detrimental effect on startups, the only thing a lot of them provide is money, which isn't always what a startup needs. It doesn't matter to the VCs that they are mostly wrong, they just have to be right once.<p>The question we need to ask here is what happens when it all crumbles down, due to the fact that all this is going on. How valuable something is ultimately depends on how many lives it improves. Whether something is valuable or not is measured by the amount of pain inflicted on society if the startup didn't exist, and ultimately if something is not needed, it wont survive anyway. The market is cruel like that, and having VC money shields entrepreneurs away from that crucial factor. All this fluffed up valuation has nothing to do with the survival of a business anyway.