Is this still a decent time to join startups or pre-ipos?

Uber
oiioasuisi

Go to company page Uber

oiioasuisi
Apr 22 12 Comments

Hey all - Curious, how was the tech market correction impacted startup valuations so far? There have been a couple high profile valuation cuts like Instacart, but overall valuations seem to be holding up. This is likely because companies aren't raising at this moment.

How is the situation at both early stage and late stage companies? Are the funding rounds getting smaller and are companies cutting down on hiring?

I'm loath to give up liquid compensation during this time of uncertainty. Appreciate any input.

TC - 600ish

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TOP 12 Comments
  • Airbnb
    joa875

    Go to company page Airbnb

    joa875
    Right now the lack of liquidity isn’t compensated by a lower valuation, so it’s harder for pre ipo companies to hire unless they significantly increase the dollar amount, which they aren’t willing to do

    I’ve spoke to a few large pre ipo companies who tout their plans to ipo, but given the offers will be based on their valuation from late 2021, I declined to move forward. I did hear from friends in these companies that they are having a much harder time getting people from top tier companies vs a year ago
    Apr 22 0
  • Rackspace
    pinkman_j

    Go to company page Rackspace

    PRE
    Rackspace
    pinkman_j
    Hell no. Probability more of getting laid off than becoming a millionaire
    Apr 22 1
  • Salesforce / Eng
    duh_pi

    Go to company page Salesforce Eng

    duh_pi
    The worst of valuation downsizing is yet to come, I think you will see mass valuation cuts this year. Having said that, if you continue focusing on startups that provide value, have enough runway for 2 years and have a decent revenue model, those will be the winners coming out of this sh*tshow.
    Apr 22 0
  • Bolt
    jfngkjgit

    Go to company page Bolt

    jfngkjgit
    Not the best time in my opinion.
    I think you're right that the ones that haven't had their valuation cut are mostly the ones that haven't raised recently.
    Apr 22 0
  • Lacework
    -πŸ˜›πŸ˜πŸ˜œπŸ€ͺ-

    Go to company page Lacework

    -πŸ˜›πŸ˜πŸ˜œπŸ€ͺ-
    I would say that stay away till dust settles. Pre-IPO startups valuation are based on euphoria in 2021. Most of these startups will have to tap liquidity in another 6-12 months. It may be up to 50% hair cut based on new price/sales reset.
    If startups want to save money for longer ramp, they will have to slow down on hiring or reoptimize the workforce. In that case, you will get more work or pink slip itself.
    Apr 22 2