Lots of bombed IPOs recently followed this track. If they IPOed at 1 (what they were likely worth) and went to 1.2 they&#x27;d be seen as a solid company with great growth potential.<p>Instead they IPO at 5, fell to 2 and are really worth 1. Now they&#x27;re seen as a hopeless train wreck that can&#x27;t be saved and sign of a &quot;bubble.&quot;<p>A silly high paper valuation during funding rounds makes for fun press releases, but it can cause a ton of headaches later (if the company isn&#x27;t actually worth those amounts... and most aren&#x27;t).