Investors think Snapchat is worth $4 billion. That’s insane.
washingtonpost.com
Investors think Snapchat is worth $4 billion. That’s insane.
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Re: Investors think Snapchat is worth $4 billion. That’s insane.
#2Insane, tilting on the criminal side.
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#3Only $200 million was raised this round for 5% of the company. All that means is that 5% of SnapChat is worth $200 million to a very small number of people. It does not mean that the other 95% is worth $3.8 billion, nor that the other 95% worth of value actually exists.
Funding rounds are just deposits on houses. I can put down $40K for 5% of a house today, and choose to never pay the rest if someone gives me that option, implicitly valuing the house at $800K. But when the time comes to actually sell, it doesn't mean that I'll get $40K back. It just means that at the point of my deposit, the value of acquiring the option to acquiring the house was worth $40K.
That's all. Valuations are bullshit.
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#4On one hand I think this is disproportionate amount of value, but on other I think investors with lot of money are not really that stupid and see some sort of value in this.
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#5While I have no idea what information investors are basing their decisions on, it's probably some evidence that Snapchat is starting to replace Facebook among some bellwether set of users. That could be a reasonable bet, depending on what the evidence is. But I don't know what the evidence is, and without it there is no way I can estimate what Snapchat's valuation should be.
(Hint: and neither can The Washington Post or any of you.)
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#6[deleted]
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#7On one hand I think this is disproportionate amount of value, but on other I think investors with lot of money are not really that stupid and see some sort of value in this.
All that you can truthfully state to be true about people with a lot of money is that they have a lot of money.
Everything else is probably narrative fallacy.
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#8These start ups get massive investment, IPO for retarded valuations, and all the venture firms/owners cash out leaving the market and institutional investors holding the rest. Slowly these companies die.. but the original people have already made their money and are on to something else. Classic. For instance, is there any sane reason why a website like rapgenius.com needs to IPO to raise public funds? The answer is no, they IPO in order to get a liquid market to sell their shares in.
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#9Wouldn't you as an investor/owner/marketer for a network-effect platform try to get as much media attention as possible? I think hyping up your startup in the billions range is the perfect way to do so.
Re: Investors think Snapchat is worth $4 billion. That’s insane.
#10[deleted]