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Sell-off in tech stocks spreads to private startups
- formerkrogemp 4y agoIs this a bubble that is popping? Should people delay or hasten their startup process now?
- rvz 4y ago> Is this a bubble that is popping? Yes it is. > Should people delay or hasten their startup process now? Delay. The time to hasten the process (especially going public) was in 2019. Now companies with extreme valuations, high operating costs and little revenue like Fast are somewhat doomed if they don't do something about it.
- formerkrogemp 4y agoInteresting that PaulMendoza and rvz advocate different approaches.
- aaaaaaaaata 4y agoI still can't tell if either of them are answering for existing, or new, startups.
- formerkrogemp 4y agoBoth existing and new? New ones will have lower valuation in the tech space as interest rates rise. Most probably.
- paulmendoza 4y agoHasten. This is really the most impactful for companies who raised money at the peak of the market and now their stock price is under the last valuation. So lots of employee options are worthless now. Those companies have lost 50% of their valuation. Instead of doubling to achieve the next round they have to 4X their revenue. It is a tough spot to be in now for them. If anything the well funded competition is now going to have to figure out a real sustainable business model.
- more_corn 4y agoThis might be a. Interesting thing to read if it wasn’t paywalled.
- greenie_beans 4y agohttps://archive.ph/sXcBQ https://archive.ph/sXcBQ