Sorry, but the first thing that comes to my mind when I read the headline is that we are in another economic bubble with valuations like this.
We are, but everyone is still in denial.
PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
51–60 of 109 posts
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#52Sorry, but the first thing that comes to my mind when I read the headline is that we are in another economic bubble with valuations like this.
I remember when I first ran across PagerDuty I thought to myself, "wait, I think at my last job we just had a couple of perl scripts do that..."
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#53Sorry, but the first thing that comes to my mind when I read the headline is that we are in another economic bubble with valuations like this.
They passed $100M in revenue. Assuming their growth and other numbers are good, this isn't crazy at all. The only thing that is different is that this was a private funding rather than an IPO. Used to be that companies would go public by the time they got here.
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#54Sorry, but the first thing that comes to my mind when I read the headline is that we are in another economic bubble with valuations like this.
They passed $100M in revenue. Assuming their growth and other numbers are good, this isn't crazy at all. The only thing that is different is that this was a private funding rather than an IPO. Used to be that companies would go public by the time they got here.
If they're really having 100MM recurring revenue, couldn't they just borrow money from the bank without losing equity?
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#55Earlier quoted context omitted.
They passed $100M in revenue. Assuming their growth and other numbers are good, this isn't crazy at all. The only thing that is different is that this was a private funding rather than an IPO. Used to be that companies would go public by the time they got here.
If they're really having 100MM recurring revenue, couldn't they just borrow money from the bank without losing equity?
Article says that it's for potential acquisitions. I'm not a banker, but I assume they don't make loans for those kinds of operations. Also, they charge interest. Ultimately, it's a question of what the most effective (cheapest) way to add capital to the balance sheet is. They almost certainly could have raised venture debt (they probably already have an agreement in place), but this was probably deemed a more cost effective way to add capital.
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#56Earlier quoted context omitted.
They passed $100M in revenue. Assuming their growth and other numbers are good, this isn't crazy at all. The only thing that is different is that this was a private funding rather than an IPO. Used to be that companies would go public by the time they got here.
If they're really having 100MM recurring revenue, couldn't they just borrow money from the bank without losing equity?
A company that is net losing money can't get a loan for 90% of their forward revenue.
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#57Earlier quoted context omitted.
They passed $100M in revenue. Assuming their growth and other numbers are good, this isn't crazy at all. The only thing that is different is that this was a private funding rather than an IPO. Used to be that companies would go public by the time they got here.
If they're really having 100MM recurring revenue, couldn't they just borrow money from the bank without losing equity?
They likely are doing both, raising $ for % and debt additionally. It's not either or, just that debt rounds usually don't get reported/announced. They often happen hand in hand with investment rounds.
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#58Earlier quoted context omitted.
They passed $100M in revenue. Assuming their growth and other numbers are good, this isn't crazy at all. The only thing that is different is that this was a private funding rather than an IPO. Used to be that companies would go public by the time they got here.
If they're really having 100MM recurring revenue, couldn't they just borrow money from the bank without losing equity?
Banks don't like to lend money to company with no tangible assets.
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#59Sorry, but the first thing that comes to my mind when I read the headline is that we are in another economic bubble with valuations like this.
I remember when I first ran across PagerDuty I thought to myself, "wait, I think at my last job we just had a couple of perl scripts do that..."
And what happens when the box those Perl scripts live on goes down, or loses connectivity?
Re: PagerDuty (YC S10) Raises $90M at a $1.3B Valuation
#60Earlier quoted context omitted.
> Shows how big the market is... I think the huge valuation has more to do with how absurd startup valuations really are[1], and less to do with showing how big the market for a niche product is. [1] Behind the gloss of absurdly high startup valuations https://42floors.com/blog/startups/absurdly-high-valuations Discussed here => https://news.ycombinator.com/item?id=6874838
10-13x ARR isn't absurdly high at all
It depends entirely on your growth rate. In my experience, a lifestyle business growing 20% YoY with 5% churn and 10% operating margin will sell for around 2.5-3x ARR.