It still feels like we are far from valuations normalizing back to earth.

I have a neighbor who co-founded a startup in a space I know fairly well. It is something of a niche space, with some publicly traded incumbents.

The startup is over 10 years old, and has now raised more capital than the entire market cap of the comparable publicly traded incumbent.

So presumably someone has their investments in this startup booked at 10-20x the valuation of the public incumbent?

They even managed to raise another round of money in the last 6 months, equal to something like 50% of the incumbent total market cap.