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How is that realistic? If they expect to get 10 billion in 10 years, they need to have 100 million paying users (if they charge $10 per user per year), which is
by yewenjie 4y ago
How is that realistic? If they expect to get 10 billion in 10 years, they need to have 100 million paying users (if they charge $10 per user per year), which is like the entire active users count of StackOverflow - https://en.wikipedia.org/wiki/List_of_social_platforms_with_at_least_100_million_active_users https://en.wikipedia.org/wiki/List_of_social_platforms_with_...
- CryptoBanker 4y agoGetting money back has nothing to do with revenue. It just means the VC was able to sell their shares for that 10 billion -a price which may or may not be related to the company’s actual fiscal performance
- ctvo 4y agoOr they launch entirely new products, in the same general space, with new pricing structures that aren't tied to their current offerings. They're Okta + 1Password + ... To clarify: I'm not sure I buy the above thesis, but VCs don't expect 2x returns at this stage was my general point. They're aiming for higher.
- wpietri 4y agoFor sure. The way I sum it up: VCs are looking for 10-to-1 odds on 100-to-1 gains. It depends on the stage, of course. This is listed as a series B, but feels kinda C-ish to me. Later stage rounds like that are unlikely to be 100-to-1, but I agree the goal is still well over 2-to-1.
- lotsofpulp 4y ago$10B back in equity, not in profits. Depending on government policy and market sentiments, then it may only require keeping a promising trajectory.