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You 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 a
by damoncali 15y ago
You 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.