Technology company startups are drawing regulatory scrutiny after Fidelity Investments reportedly downgraded some of its investments in so-called "unicorns." With companies like Uber collecting billions of dollars before going public -- and investors all hoping to bet on the next big thing -- the Securities and Exchange Commission is getting curious about how the financiers decide what the companies are worth and why the disparity in values.
The reason for this interest? Supposedly, the tech boom is on the wane. According to the Wall Street Journal, the SEC wants to figure out whether the process for valuing large startups is accurate and whether there are procedures in place to ensure fair valuations across companies.