4 ms·
It sounds like this guy just assumed that the initial valuation had to be correct, which is of course a childish way to look at the value of something. The valu
by hnarn 5y ago
It sounds like this guy just assumed that the initial valuation had to be correct, which is of course a childish way to look at the value of something. The value of anything, whether that's a multi-million dollar company or a Snickers bar, is decided by the market at the time it's placed in the market. If Apple is offering you $50M and everyone else is offering you less (or nothing), guess what, you're worth $50M. Maybe that's because you didn't sell yourself very well, but regardless your value is what other people are willing to pay.
- karmakaze 5y agoI agree. I can also see how it would be so easy to fall into this logical trap. Having your past value anchored in your mind at 50M for so long while you continue to show value and users added then adding up to 50M would be hard to reason about and emotionally accept on the spot. Still saying "Steve, I think [...] Actually, I know we’re worth three times as much." was clearly outside the lines, speaking to someone with much more experience valuing companies being acquired.