June 2017 Valuing start-ups: Bordering between rational and irrational As of January 2017, there were about 185 so-called “unicorns” – companies whose valuations are at least $1.0 billion. Take for instance, UBER’s latest valuation at $70 billion. That’s very close to AT&T’s market capitalization of $71.0 billion. UBER was founded in 2009; AT&T in 1885. So what’s driving the value of these start-ups over the roof? How are these start-ups being valued?