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Let’s replay this. You: how would you even value SpaceX? Me: Some multiple of their last funding round You: You’re irrational. They made money last year. Wh
by sorcerer-mar 2y ago
Let’s replay this.
You: how would you even value SpaceX?
Me: Some multiple of their last funding round
You: You’re irrational. They made money last year.
What?
Do you think earning a profit makes your company uncountably valuable? Or earning a profit and adding some promises on top? Neither is true!
These aren’t real problems in any scenario and certainly not in the scenario of “hello the United States of America is seizing your company, here’s a check we think is fair.”
- nomel 2y agoI responded to what you actually wrote in your previous comment: > Some multiple on the last funding round (perhaps a multiple <1) The irrational part is that it could possibly be a fraction of their last round of funding. Do you agree it would have to be a multiple much greater than 1, since their last round of funding (750 million) was a small fraction of their profit last year, and they are on the path of exceeding their total accumulated funding for all rounds in another two years? I've never seen a profiting company valued based on their last round of funding rather than current/future revenue/profits. Do you have any examples of this, in the real world?
- sorcerer-mar 2y agoNo, it wouldn’t have to be. Perhaps it would be, perhaps it wouldn’t be, as I said.
- nomel 2y agohttps://news.ycombinator.com/item?id=43520384 https://news.ycombinator.com/item?id=43520384 Again, do you have an example of the current value of a company, with similar circumstances, being based on the last round of funding?