Databricks cut valuation to $31B from $38B is it enough?
I feel bad for my bros at Databricks. Seems like equity is still a sour subject. It’s almost like getting AMZN RSUs at 160 a share instead of the current 115. Hope they are giving huge raises for salary to compensate. #databricks #aws #gcp #azure
I’d say no. That’s not keeping up with the value that comparable publicly traded companies have lost.
I feel bad. Hopefully they stand up for themselves and don’t get swindled by executives making the real money.
I weep for them
Databricks going to go down like Instacart. We’re not out of the downturn yet. Their IPO is pushed out at least 3 years
I wouldn’t say that long. I’m hoping it’s 2023, few friends still chasing the carrot. Pulling for them.
Doubtful. Then they have to go for much lower valuation with the hopes of going up when the market recovers fully later
Isn’t valuation supposed to be done by a 3rd party?
Nope
409a is done by a third party but approved by the company.
Snowflake, Splunk and Salesforce have been on average down by 60%.
Yah less than 10% cut sucks for employees but not for executives… hope engineers aren’t just taking this on the chin.. but they probably are.. no spine.
I think that’s about 20% cut, but yes, not enough.
OP how do you think Snowflake is doing in this environment ?
I don’t like that the company hasn’t adjusted the valuation used in granting equity, but I don’t think 31B is too far off. I think it’s fair to roughly value us at half of what Snowflake it, which would put us at ~28B. But tbh I think cloud companies in general are a bit late to the correction train and people are still overvaluing them relative to the rest of the market. I expect more near-term downside for Snowflake, Datadog, etc, which would also imply our valuation would be lower if we were public too
Fair point
The number of statements in this thread that are simply pulled out of people's asses is astounding.
Isn’t that the point of Blind?
Hi! I’m the reporter who broke this news in The Information. To clarify, it was a 7% drop in 409a valuation. 409a valuations are typically lower than post-money valuations, which are calculated by multiplying the most recent price paid for preferred shares by all outstanding shares (so $38B, in this case — that post money valuation hasn’t changed since Aug 21). The internal 409a valuation — calculated by outside auditors + approved by company — fell 7% to 31B, meaning we can gather the 409a had been about ~33.3B as of last August, 2021.
I explained most of this nuance in a tweet thread: https://twitter.com/heetermaria/status/1583131688548171781?s=46&t=idplnyyLo6117Bbbx2uUhQ
And original story is here: https://t.co/0dUYjXJSfZ
i dont even know their balance sheet
I imagine you don’t know any private company balance sheets. Unless it’s.. your private company.