Uber confirms SoftBank has agreed to invest

Post by ProAm » Mon, Nov 13, 2017, 2:23 AM UTC

clusmore wrote: post #19

So how is Uber's runway looking now? This article [1] from August suggests they had just over three years of runway at the end of June ($6.6b burning at about $2b/yr). So this extends the runway by only six months? Are they going to survive long enough to see autonomous drivers? How will this deal affect future funding? [1] https://venturebeat.com/2017/08/23/uber-is-still-burning-cas...

Post by thatcherc » Mon, Nov 13, 2017, 3:30 AM UTC

ProAm wrote: post #21

clusmore wrote: post #19

So how is Uber's runway looking now? This article [1] from August suggests they had just over three years of runway at the end of June ($6.6b burning at about $2b/yr). So this extends the runway by only six months? Are they going to survive long enough to see autonomous drivers? How will this deal affect future funding? [1] https://venturebeat.com/2017/08/23/uber-is-still-burning-cas...

They did just sign a contract with NASA to help fly taxi aeroplanes [1] [1] https://www.reuters.com/article/us-portugal-websummit-uber/u...

Post by moxious » Mon, Nov 13, 2017, 4:13 AM UTC

yeukhon wrote: post #24

clusmore wrote: post #19

So how is Uber's runway looking now? This article [1] from August suggests they had just over three years of runway at the end of June ($6.6b burning at about $2b/yr). So this extends the runway by only six months? Are they going to survive long enough to see autonomous drivers? How will this deal affect future funding? [1] https://venturebeat.com/2017/08/23/uber-is-still-burning-cas...

They might spin off the autonomous program into another company to raise fund, prior to IPO, perhaps, just a thought. I think that's a better option financially.

Post by hatred » Mon, Nov 13, 2017, 4:27 AM UTC

raiyu wrote: post #8

RileyJames wrote: post #6

Can anyone explain why $1B is being invested at a $70B valuation, while existing share holdings are being purchased at a lower/to be determined valuation?

The $1B that is being invested at the $70B valuation is direct from the company and Softbank will be purchasing preferred shares like any other VC. These preferred shares have extra rights, things like liquidation preference, board seats, voting rights, etc. What specifically they will receive is unknown, but at the very least they will have a 1x liquidation preference on that $1B invested, which means if the company…

Post by yeukhon » Mon, Nov 13, 2017, 4:31 AM UTC

moxious wrote: post #25

yeukhon wrote: post #24

Earlier quoted context omitted.

They might spin off the autonomous program into another company to raise fund, prior to IPO, perhaps, just a thought. I think that's a better option financially.

If the autonomous stuff works (HUGE if) it would completely change the core business. I can't see why they'd spin it off. Why sell your future unless you think it won't work out.