Valuation slashed by 50% of startups

SAP
ksYR03

Go to company page SAP

ksYR03
Mar 30, 2020 33 Comments

So as I was expecting news is that VCs are now going to slash current valuation of many startups by 50% and only do a flat raise if any.

I am sure most would know of Gokul Rajaram. He sold caviar to Square. And as per h
The top VC he is mentioning really the top one.

Does this look troublesome to employees of Airbnb etc as their compensation is slashed by half? Unless company is looking to give more equity to compensation for the slashing of valuation?

Valuation slashed by 50% of startups

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TOP 33 Comments
  • Drift
    19andMe

    Go to company page Drift

    19andMe
    ๐Ÿ˜‚ @ โ€œall valuationsโ€. Not for companies with a product that thrives under these conditions. Weโ€™re becoming a unicorn shortly.
    Mar 30, 2020 26
    • Google
      easybreezy

      Go to company page Google

      easybreezy
      what stops google from doing that to any product? it's because startups are better at building B2C / UI-based applications than big co's are. Big co's excel at the highly-technical, but not pretty/easy-to-use type software.
      Apr 13, 2020
    • Drift
      19andMe

      Go to company page Drift

      19andMe
      Idk, ask your boss man Benioff over at your Ohana why he canโ€™t do that. He couldnโ€™t buy our founderโ€™s last company (told Benioff โ€œnoโ€ and sold for more $ to Hubspot pre IPO) and we wonโ€™t sell to him now. Kudos to you, youโ€™re our target, but weโ€™ve made it to our ARR levels faster than Salesforce did per Sequoiaโ€™s chart. If we even were to sell pre IPO, itโ€™s either Salesforce or Adobe writing a multi billion dollar check.
      Apr 13, 2020
  • Intel
    fzqe61

    Go to company page Intel

    fzqe61
    Most startups valuation will go to zero.
    Mar 30, 2020 0
  • New
    ab0

    New

    ab0
    Probably lots of startups are worthless unless you have a compelling product on hand.
    Mar 30, 2020 1
    • New
      petburi

      New

      petburi
      you can't have a product, when there is no economy
      Mar 30, 2020
  • AMD
    QVgF00

    Go to company page AMD

    QVgF00
    You're better off working for a large company and building wealth the long way. Most startups fail miserably despite having great engineers.
    Apr 2, 2020 0
  • +1 elitesoul8
    More important is that your shares are useless until they are realized in some way. Airbnb is not going to try and raise another round or IPO unless it's really bleeding. Get your shares and sit tight, they'll come back if Airbnb makes it through all this... Then again if they don't this whole convo is moot so :shrug:
    Apr 7, 2020 0