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Step 1) come up with decent idea for $10million company Step 2) get offered funding for a $200million company Step 3) accept it, because, money! Step 4) spend
by rossdavidh 7y ago
Step 1) come up with decent idea for $10million company
Step 2) get offered funding for a $200million company
Step 3) accept it, because, money!
Step 4) spend money, attempting to get bigger than you can get
Step 5) implode
- mixmastamyk 7y ago4a) Cash out
- wpietri 7y agoI'll be very interested to learn how often this happens. Certainly Kalanick and Neumann managed to walk away billionaires from companies that have never turned a profit. But I'm hoping that is a rare outcome.
- smallgovt 7y agoJust because Uber hasn't turned a profit doesn't mean they aren't worth $xxB. If you actually believe Kalanick cashed out his shares at an overvalued price, go short Uber and make tons of money. That said, you're probably wrong.
- wpietri 7y agoIt depends on what you mean by "worth". Market price is market price, after all. But it's perfectly plausible that Uber will never turn a profit. It's indisputable that Uber was severely overvalued for a long time. And when thinking from a systemic perspective about whether Kalanick should be a billionaire, we have to reckon with the externalities.