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I don't understand why any investor would be worried about missing an opportunity like Pinterest at this stage. Yes, they have a lot of traction and a nice val

by daeken 14y ago

I don't understand why any investor would be worried about missing an opportunity like Pinterest at this stage. Yes, they have a lot of traction and a nice valuation, but if you're an investor in Pinterest you have effectively nothing to show for it right now. If they go public successfully or sell for a large chunk of money, then you can kick yourself for passing it up; as it stands, you made a logical decision with the info you had, and that may have turned out to be the wrong one, for the right reasons.

nikcub 14y ago
The last round of investment valued Pinterest at $1.5B. If an angel investor from an early round wanted to cash out at that point they could have. From $5M to $1.5B in two years. That is a hell of a return.
- deleted 14y ago
  [deleted]
- the_mitsuhiko 14y ago
  That does not mean you get the money. Nobody is going to pay out 1.5B to any investor.
  - hluska 14y ago
    They closed a round at a $1.5B valuation. What are you trying to say?
  - ojbyrne 14y ago
    Probably true, but with secondary markets you could probably sell a small portion of your stock for 10x your total investment, and be left with an immediate 10x return and huge upside with the remaining stock.
therealarmen 14y ago
I agree with you, there is still a lot for Pinterest to figure out. But if you are an early investor and don't believe in the company's future, there are many others who would be happy to buy up your Pinterest shares on the secondary markets. See here: https://www.secondmarket.com/company/pinterest https://www.secondmarket.com/company/pinterest Just one way to get your 300x return (assuming return on $5 million valuation to current $1.5 billion valuation) if you wanted it right now.
pg 14y ago
The liquidity and value of an asset are orthogonal questions. Not that Pinterest stock is even necessarily illiquid (I have no idea).

by daeken 14y ago

nikcub 14y ago

The last round of investment valued Pinterest at $1.5B. If an angel investor from an early round wanted to cash out at that point they could have. From $5M to $1.5B in two years. That is a hell of a return.

deleted 14y ago
[deleted]
the_mitsuhiko 14y ago
That does not mean you get the money. Nobody is going to pay out 1.5B to any investor.
- hluska 14y ago
  They closed a round at a $1.5B valuation. What are you trying to say?
- ojbyrne 14y ago
  Probably true, but with secondary markets you could probably sell a small portion of your stock for 10x your total investment, and be left with an immediate 10x return and huge upside with the remaining stock.

therealarmen 14y ago

I agree with you, there is still a lot for Pinterest to figure out. But if you are an early investor and don't believe in the company's future, there are many others who would be happy to buy up your Pinterest shares on the secondary markets. See here: https://www.secondmarket.com/company/pinterest https://www.secondmarket.com/company/pinterest Just one way to get your 300x return (assuming return on $5 million valuation to current $1.5 billion valuation) if you wanted it right now.

pg 14y ago

The liquidity and value of an asset are orthogonal questions. Not that Pinterest stock is even necessarily illiquid (I have no idea).