Dizzying Ride May Be Ending for Startups
nytimes.com
Dizzying Ride May Be Ending for Startups
1–10 of 128 posts
Re: Dizzying Ride May Be Ending for Startups
#2If Fidelity just did a 25% write down on SnapChat on the most senior portion of a $600m investment round, and assuming that Fidelity has at least a 1x liquidity pref/ratchet, then SnapChat is now valued at $462M floor, not $15 billion.
Re: Dizzying Ride May Be Ending for Startups
#3If I may speculate, it seems like the end result of this situation will be that in the future, startups will avoid taking money from mutual funds or anyone else who must attempt to accurately value their holdings publicly, whenever possible.
Re: Dizzying Ride May Be Ending for Startups
#4Looking at India, this can be conflated with a global level ending of the dizzying ride. [0] gives a good overview of this. In short, the free lunch is now over and people are asking for results. I am sure it has a lot to do also at an economic level with the Fed now talking of tightening- that means interest rates are headed higher and there is more aversion to risk. I am not an economist, so others might have different opinions.
Re: Dizzying Ride May Be Ending for Startups
#5If I may speculate, it seems like the end result of this situation will be that in the future, startups will avoid taking money from mutual funds or anyone else who must attempt to accurately value their holdings publicly, whenever possible.
If they have a choice. The situation where startups are spoiled for choice in investors will not continue forever.
Frankly, the fact that public valuations (of any kind - see Square's IPO level) are lower than private ones should be ringing alarm bells all over, not be dismissed.
Re: Dizzying Ride May Be Ending for Startups
#6it's ending again? Wasn't it supposed to end the year before, and the year before that, and the year before that? When is google going to just drop news.google.com and have an algorithm write the same stories over every year?
Next up: The next [pick top product] killer! you won't believe how [pick new or underdog product] is going to completely replace [pick top product] due to it's [pick random feature in [pick new or underdog product]]
Re: Dizzying Ride May Be Ending for Startups
#7Next bubble burst is close.
Re: Dizzying Ride May Be Ending for Startups
#8Next bubble burst is close.
the sky is falling...
Re: Dizzying Ride May Be Ending for Startups
#9It's time for a new term: a "Pegasus" (a different kind of mythical horse than a unicorn):
https://twitter.com/jgrahamc/status/658702918200250368
Pegasus (n)
1. Mythical winged horse;
2. Silicon Valley 'unicorn' with high gross margin.
i.e. one that might actually take off.