Another interesting piece of info I read today:

"... growth investors like venture capitalists typically require a higher rate of return to compensate them for the risk. According to CB Insights, only 0.91 percent of startups make it from seed stage to greater than $1 billion in value.

Thus, seed valuations need to be less than $10 million ($1 billion multiplied by 1 percent) and returns need to be higher than 100x for the bet to be expected value positive at that failure rate (100x multiplied by .$01 = 1x money). (This is a slight oversimplification but helpful for purposes of this analysis).

The bottom line is that the initial valuation matters and needs to compensate you for the risk."

With that said, ICOs are extremely favorable to companies and founders. VC funding is much stricter and gets closer to reasonable valuations.

source: https://www.coindesk.com/making-sense-crypto-asset-valuation-insanity/