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If Sequoia goes in at a $500m valuation, few companies will be able to give Sequoia a "decent" return/exit. Indeed this is a "frothy" valuation.
by antr 15y ago
If Sequoia goes in at a $500m valuation, few companies will be able to give Sequoia a "decent" return/exit. Indeed this is a "frothy" valuation.
- tejaswiy 15y ago"forthy" ! What in the world can they do to make money to justify such a high valuation? Sell filters !?
- methodin 15y agoI could see some people buying expensive filters as a status symbol
- rokhayakebe 15y agoThey have to make only $100M/year to be valued at 5 times yearly revenue. It is very likely Instagram can double its user base over the next 12 months now that it supports android. At that point reaching $100M in revenue will be quite easy due to the fact that mobile consumers are very likely to make sub $2.99 purchases/upgrades.
- antr 15y agoI think Instagram is a great company but I personally see too many IFs and moving pieces to support a $500m valuation.
- nashequilibrium 15y agoI totally agree, there are a number of copy cats out now. Flickr for android copied instagrams product offering, therefore these copy cats should cannabilise some sales. Instagram is very trendy right now so on brand awareness it has a huge edge, the issue is can they sustain this edge two years down the line when the dust settles?
- nashequilibrium 15y agoI totally agree, there are a number of copy cats out now. Flickr for android copied instagrams product offering, therefore these copy cats should cannabilise some sales. Instagram is very trendy right now so on brand awareness it has a huge edge, the issue is can they sustain this edge two years down the line when the dust settles?
- nashequilibrium 15y agoI totally agree, there are a number of copy cats out now. Flickr for android copied instagrams product offering, therefore these copy cats should cannabilise some sales. Instagram is very trendy right now so on brand awareness it has a huge edge, the issue is can they sustain this edge two years down the line when the dust settles?
- nashequilibrium 15y agoI totally agree, there are a number of copy cats out now. Flickr for android copied instagrams product offering, therefore these copy cats should cannabilise some sales. Instagram is very trendy right now so on brand awareness it has a huge edge, the issue is can they sustain this edge two years down the line when the dust settles?
- nashequilibrium 15y agoI totally agree, there are a number of copy cats out now. Flickr for android copied instagrams product offering, therefore these copy cats should cannabilise some sales. Instagram is very trendy right now so on brand awareness it has a huge edge, the issue is can they sustain this edge two years down the line when the dust settles?
- damoncali 15y agoThat depends entirely on the terms of the deal.
- antr 15y agoDo you think pre-Sequoia investors are willing to price themselves out? I think not.
- damoncali 15y agoYou are making a lot of assumptions. There are many ways in which the deal could make sense. Or Sequoia could be stupid. Their track record suggests that they are more often right than stupid.
- antr 15y agoWhat assumptions?
- damoncali 15y agoLiquidation preferences, hurdle rates, sales between investors, and other deals with the same investors just to name a few. When you stack those up in the right way, you can make deals that look very stupid all of a sudden look very smart. Not saying that's the case here, but you can't just look at valuation and say "that's dumb".
- antr 15y agoNever said "that's dumb", I just believe the valuation to be "frothy". More often than not, in the current environment value has nothing to do with price.