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-->"It's exceedingly hard to believe google valued a small pre-funding startup at over low eight figures." But Sequoia did when they made the $40mm investment.
by vnchr 15y ago
-->"It's exceedingly hard to believe google valued a small pre-funding startup at over low eight figures."
But Sequoia did when they made the $40mm investment. That's what's so odd about it.
- trevelyan 15y agoThis "de-bubbles" Color in my mind. Not crazy to get a high valuation when you have Google interested in buying you for significantly more.
- vnchr 15y agoMaybe I'm missing something, but I'd chalk it up to 2 groups with deep, deep pockets making a long shot bet because they can. Once Sequoia invested, the acquisition was derisked for someone like Google. Then Google just needed to offer a price of some multiple of the investment ("How about 5x? Not bad for 6 months!"). Conversely, Sequoia might have hoped for a flip knowing Google was so aggressive for social startups at the time and invested accordingly. As far as I can tell, the Color leadership were blinded by their own genius and these early "signals" of success and they screwed up their acquisition, launch, and thus far all meaningful execution.