<i>...and we VCs are now facing the choice of whether to markdown our portfolios in reaction to Fidelity’s markdowns or explain to our investors and auditors why we did not do that.</i><p>As expected. See previous discussion at <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=10549398" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=10549398</a><p>Long-term, the public and private markets are indeed blurring.  Short-term, the question is whether and how this round of unicorn write-downs will impact headline valuations and the capital raising climate for companies at earlier stages.  In other words, will this make it harder for startups to raise capital?