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They raised 60 million. The investors think it’s worth 600M+

deleted 8mo ago
[deleted]
kylecazar 8mo ago
It's the valuation that is wild to me (I think the idea itself has merit). But these are the new economics. I can only say "that's wild" enough before it is in fact no longer wild.
- shimman 8mo ago
  These aren't new economics, it's just VC funds trying to boost their holdings by saying it's worth X because they said so. Frankly the FTC should make it illegal.
  - jiveturkey 8mo ago
    That's not how it works at all. Why stop at $300M, why didn't they just say $1BN out the gate?
    - shimman 8mo ago
      Of course it's how it works, how else do you justify a company that is making negative profit into some how being worth $300M? Like that's just the game, IDK why people accept it. It's not democratic and all it does it prime the population for fraud and abuse.
      - senordevnyc 8mo ago
        Yeah, that's not the game at all. Have you ever invested in startups?
        shimman 8mo ago
        I don't need to "play the game" to realize private valuations are just marketing fluff not based in reality. It's literally "the greater fool" theory in action. When the incentives are to just lie and not put out something with some actual scrutiny like a 409A, it's quite clear what game is being played. But yes, I would totally love to invest in startups with people's pension funds. It seems like the perfect scam where the only losers are the public that allows such actions.
        senordevnyc 8mo ago
        Almost all of the world's most valuable companies were once VC investments that I'm sure you would have dismissed as just greater fool nonsense. But more to the point, I was talking about how you apparently think VCs just make up super high valuations of the companies they invest in to justify those investments? Are you not aware that VC is a competitive market?
niobe 8mo ago
That's not impressive. That's an incredible amount concentrated in the hands of a few looking for a place to live. It has to end up somewhere. Some of it goes everywhere.
maddmann 8mo ago
That is where I’m shocked being in a position of raising for a startup myself, what was in their pitch deck/data room that convinced them of this valuation? Or is it due to the founders reputation and not the substance?
blitzar 8mo ago
Its like github - with the word Ai. <end> I LOVE THIS FOUNDER - I am a 10 out of 10 - YES!!! Take my (investors) money

deleted 8mo ago

[deleted]

It's the valuation that is wild to me (I think the idea itself has merit). But these are the new economics. I can only say "that's wild" enough before it is in fact no longer wild.

shimman 8mo ago
These aren't new economics, it's just VC funds trying to boost their holdings by saying it's worth X because they said so. Frankly the FTC should make it illegal.
- jiveturkey 8mo ago
  That's not how it works at all. Why stop at $300M, why didn't they just say $1BN out the gate?
  - shimman 8mo ago
    Of course it's how it works, how else do you justify a company that is making negative profit into some how being worth $300M? Like that's just the game, IDK why people accept it. It's not democratic and all it does it prime the population for fraud and abuse.
    - senordevnyc 8mo ago
      Yeah, that's not the game at all. Have you ever invested in startups?
      - shimman 8mo ago
        I don't need to "play the game" to realize private valuations are just marketing fluff not based in reality. It's literally "the greater fool" theory in action. When the incentives are to just lie and not put out something with some actual scrutiny like a 409A, it's quite clear what game is being played. But yes, I would totally love to invest in startups with people's pension funds. It seems like the perfect scam where the only losers are the public that allows such actions.
        senordevnyc 8mo ago
        Almost all of the world's most valuable companies were once VC investments that I'm sure you would have dismissed as just greater fool nonsense. But more to the point, I was talking about how you apparently think VCs just make up super high valuations of the companies they invest in to justify those investments? Are you not aware that VC is a competitive market?

niobe 8mo ago

That's not impressive. That's an incredible amount concentrated in the hands of a few looking for a place to live. It has to end up somewhere. Some of it goes everywhere.

maddmann 8mo ago

That is where I’m shocked being in a position of raising for a startup myself, what was in their pitch deck/data room that convinced them of this valuation? Or is it due to the founders reputation and not the substance?

blitzar 8mo ago

Its like github - with the word Ai. <end> I LOVE THIS FOUNDER - I am a 10 out of 10 - YES!!! Take my (investors) money