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"A company that has profitability within reach and is on track to be worth $100 million with several more years of hard work. This is nothing to be ashamed of"
by CPLX 10y ago
"A company that has profitability within reach and is on track to be worth $100 million with several more years of hard work. This is nothing to be ashamed of"
I wonder if there's some vague sense of how disconnected one has to be from normal conceptions of reality to consider building a $100MM company something to be ashamed of.
- nikanj 10y agoI was reading this, and nodding along, until I saw that number. Is SV really that inflated? Your average entrepreneur, say Bob from Bob's Plumbing, would be really happy to have his company build to $10MM over a decade or two.
- derefr 10y agoI've always interpreted this sort of valuation as more about "potential best-case acquisition price" than about real market cap. Instagram was "worth" a billion dollars, because Facebook said so; that doesn't mean it had a $1bn market cap. But when VCs talk about you having a "$100MM company", that's what they mostly mean: that there might be a Facebook or two around who would pay that. I'm actually curious, since we've seen a few (not many, but a few) tech IPOs of these SV darlings in the last five years: how well does their publicly-traded market cap today align with the projected valuations VCs invested at?