3 ms·
SoftBank is a meme at this point but I'd imagine most VCs are down on paper as well, rising interest rates crushed the valuation of pretty much every startup
by ren_engineer 3y ago
SoftBank is a meme at this point but I'd imagine most VCs are down on paper as well, rising interest rates crushed the valuation of pretty much every startup
- deleted 3y ago[deleted]
- mrguyorama 3y agoIt's almost like none of them had any actual value, and the vast majority of them were just attempts to crush and take over existing markets using outside war chests.
- maerF0x0 3y agoI think a very large percent of them had a nonzero value, but the issue is if you can get 4% guaranteed return on cash, vs risky 1% return on cash suddenly the asset is worth less than before. But if you can get unlimited money at 0% you might as well invest it on 1% return bets. You're still making money on others' money.
- lotsofpulp 3y agoI would have thought the issue was the lack of net income.
- maerF0x0 3y agoThe idea is so long as you have an expectation of future ROI you can amortize that future value into the present and sell off the present equity for current capital. People are incentivized to put in capital so long as the risk adjusted rate of return exceeds marginal alternatives (including just sitting on the cash in a 2-10% inflation rate environment)
- jacquesm 3y ago> I'd imagine most VCs are down on paper as well No need to imagine. Early stage is doing quite well, series 'A' and onwards not so good, with some variation due to the various industries.