3 ms·
That's definitely fair, and its one of the main reasons I try explaining to non-tech friends why many (not all) of these valuations are complete and utter BS -
by crapshoot101 12y ago
That's definitely fair, and its one of the main reasons I try explaining to non-tech friends why many (not all) of these valuations are complete and utter BS - they are options, not real equity purchases (note: some companies with $multi-B valuations are only selling common equity - those are closer to being real). Ironically, this is especially true of smaller startups that are raising at $100-$200M valuations - the fundementals don't uphold that valuation, and the "sell to Google / Yahoo / FB" approach only works for a few (and is a lot harder than the $10M acquihire.