4 ms·

This article is just stupid. Pretty much any billion dollar company is meaningful by definition. You can't just manufacture something like that out of thin erro

• adventured 12y ago
  The only scary danger I'm familiar with from it (for businesses and entrepreneurs), is the potential for mass delusion and altering behavior based on believing the good valuation & funding times will never end. Falling into that trap is very common. I've seen two large stock market / tech implosions in my relatively short lifetime, the 1999/2000 bubble and the smaller 2005/2007 pre-great recession era. In both cases there was a lot of hubris around the notion that because you acquired a massive valuation, you had a business that was really worth that, and really had that sort of potential. It's a failure to separate the financial atmosphere at the time, and the reality of business when it comes to generating the sales and profit that it takes to support a given valuation over time. You most certainly can manufacture a billion dollar valuation out of, essentially, thin air - it happened frequently in 1999.