4 ms·
To me, $50M seems like a tiny amount of raise for such a high valuation. Is this normal?
by jermaustin1 8y ago
To me, $50M seems like a tiny amount of raise for such a high valuation. Is this normal?
- aviv 8y agoSomebody needed to park money somewhere.
- gammateam 8y agoThey've raised over $200M A proper translation of this lingo is "$50m worth of shares were sold at a price that puts all the shares combined at a price of $1.5B"
- wuliwong 8y agoI was wondering the same thing.
- trhway 8y agoThey may not need those money and agreed to take them only at that high valuation. There have been several pretty similar deals in the last couple of years. It's a win-win for both sides. The company gets a lot of financial power and pushes the sales up, that drives valuation up - in a year or 2 from the current 100M+ ARR they will be doing 300M and either IPO at 4B or 11th hour acquisition at 6-8B.
- rs86 8y agoYep, it is a weird deal. Any company worth 1,5bn should be able to generate cash or raise debt instead of going for expensive equity. Looks like the valuation is well out of sync with their actual financial health.