Silicon Valley should rein in unicorns: SEC

Washington

THE head of the US Securities and Exchange Commission (SEC) ventured deep into Silicon Valley to warn the tech community and its investors to be wary of unicorns.

Mary Jo White, speaking at Stanford Law School in California, was referring not to the mythical horse-like creature but to non-public startups valued at more than US$1 billion. Such firms may warrant special scrutiny into whether their internal controls and investor protections are keeping pace with their growth, she said.

"They do not appear to be an endangered species," Ms White said in remarks prepared for a conference on protecting investments in non-public firms. "The concern is whether the prestige associated with reaching a sky- high valuation fast drives companies to try to appear more valuable than they actually a…