5 ms·

Not to mention all of the unicorns supposedly worth billions that aren't IPOing. Because IPOing would finally let the public decide what they are worth (it woul

Not to mention all of the unicorns supposedly worth billions that aren't IPOing. Because IPOing would finally let the public decide what they are worth (it would be a harsh wakeup call for a lot of them). Instead we're stuck with their VC cronies stuffing self-serving valuations down everyone's throats. By the way, I too am worth 2.5 billion dollars. What?! You want me to prove it?! Get off my lawn!

coldtea 10y ago
>By the way, I too am worth 2.5 billion dollars. What?! You want me to prove it?! Get off my lawn! While I agree with the first part of what you wrote, when it comes to this I can say: You don't need to prove it (and those unicorns didn't prove it either). You just need to be able to get some millions of dollars on your 2.5 billion self-valuation, and you'll be as good as them. Because they did that.
- andyjdavis 10y ago
  >You just need to be able to get some millions of dollars on your 2.5 billion self-valuation Mathematically speaking you just need to get someone to give you a single dollar in exchange for 1/2500000000 of 100% ownership, meaning that 100% is theoretically worth $2.5 billion.
  - tedmiston 10y ago
    A classic post from 37signals: PRESS RELEASE: 37SIGNALS VALUATION TOPS $100 BILLION AFTER BOLD VC INVESTMENT https://signalvnoise.com/posts/1941-press-release-37signals-valuation-tops-100-billion-after-bold-vc-investment https://signalvnoise.com/posts/1941-press-release-37signals-...
  - coldtea 10y ago
    Mathematically yes -- but for the valuation to have any meaning it should refer to a significant enough percentage.
- JamesBarney 10y ago
  Say their are two companies. 'Georges Growers' and 'Dave's Dilly Daddlers'. I give 'Dave's Dilly Daddlers' $100,000 for 10% of the company. But with the condition that if it's valuation ever falls below 1 millions dollars I get 20% equity, and if the company goes bust I get paid back before any other investors, and I get the title to the founders house. I also give 'Georges Growers' a $100,000 for 10%. But with no conditions, I'm just buying a portion of the company. Are both of these companies worth 1 million dollars? In some sense yes, but in a much more meaningful sense no. And many recent deals have been closer to the former than the latter.
mlinsey 10y ago
"their VC cronies stuffing self-serving valuations down everyone's throats" Whose throats? The other VC "cronies" who are buying shares at those prices?
Trundle 10y ago
>VC cronies stuffing self-serving valuations down everyone's throats. Source?

coldtea 10y ago

>By the way, I too am worth 2.5 billion dollars. What?! You want me to prove it?! Get off my lawn! While I agree with the first part of what you wrote, when it comes to this I can say: You don't need to prove it (and those unicorns didn't prove it either). You just need to be able to get some millions of dollars on your 2.5 billion self-valuation, and you'll be as good as them. Because they did that.

andyjdavis 10y ago
>You just need to be able to get some millions of dollars on your 2.5 billion self-valuation Mathematically speaking you just need to get someone to give you a single dollar in exchange for 1/2500000000 of 100% ownership, meaning that 100% is theoretically worth $2.5 billion.
- tedmiston 10y ago
  A classic post from 37signals: PRESS RELEASE: 37SIGNALS VALUATION TOPS $100 BILLION AFTER BOLD VC INVESTMENT https://signalvnoise.com/posts/1941-press-release-37signals-valuation-tops-100-billion-after-bold-vc-investment https://signalvnoise.com/posts/1941-press-release-37signals-...
- coldtea 10y ago
  Mathematically yes -- but for the valuation to have any meaning it should refer to a significant enough percentage.
JamesBarney 10y ago
Say their are two companies. 'Georges Growers' and 'Dave's Dilly Daddlers'. I give 'Dave's Dilly Daddlers' $100,000 for 10% of the company. But with the condition that if it's valuation ever falls below 1 millions dollars I get 20% equity, and if the company goes bust I get paid back before any other investors, and I get the title to the founders house. I also give 'Georges Growers' a $100,000 for 10%. But with no conditions, I'm just buying a portion of the company. Are both of these companies worth 1 million dollars? In some sense yes, but in a much more meaningful sense no. And many recent deals have been closer to the former than the latter.

mlinsey 10y ago

"their VC cronies stuffing self-serving valuations down everyone's throats" Whose throats? The other VC "cronies" who are buying shares at those prices?

Trundle 10y ago

>VC cronies stuffing self-serving valuations down everyone's throats. Source?