Public listings of venture-backed companies like GitLab Inc., which priced at a market capitalization of $11 billion and saw its shares pop 35% on the first day of trading last week, are drawing more capital into the private market. GitLab's previous financing round valued the company at $2.75 billion.
The flood of capital to private markets increases competition for venture deals, boosting valuations, increasing paper returns for many funds and allowing them to raise even more money, which they funnel into larger deals at higher valuations. And on and on.
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