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They even have the complete sources of their firm to convey that narrative to bear. Narrative leverage is the PE ratio of a company. That is a mirrored image of how high traders will value an organization relative to its current earnings. It solely matters insofar as these returns translate to stronger brand worth or direct relationships that can be used on behalf of the founder’s company. This could also be true, however I suspect the larger cause is that we don’t value fixing these schleps appropriately. When companies’ earnings cannot keep pace and reside up to those expectations, we see the price and PE ratio ultimately fall to replicate this, much more so where firms don’t have the power to reap the benefits of their PE ratio and the lofty expectations of them to improve the enterprise now. The highest firms-and especially their founders-are more identified than their VCs. What the top VC firms are selling at the moment isn’t money-they’re lending their own model to startups