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The state of Sam Altman's Bubble Bet, 1 year before deadline

16 pointsby rreichmanover 6 years ago
TL;DR It seems likely that Sam Altman will lose his 2015 bubble bet, with mid-stage companies growing like crazy but early-stage and late-stage companies growing a bit slower than he expected. A big IPO for Uber and big fundraising round for Gitlab could still give Altman the win.<p>*<p>In March 2015 Sam Altman published his Bubble Bet blog post (https:&#x2F;&#x2F;blog.samaltman.com&#x2F;bubble-talk), in which he decries the talks of a tech bubble and proposes a bet on the future of tech valuations. His proposition is that by January 1 2020: 1. The top 6 US companies (Uber, Palantir, Airbnb, Dropbox, Pinterest, and SpaceX) which at the time were worth just over $100B, will be worth at least $200B. 2. A group of mid-stage YC-backed companies (Stripe, Zenefits, Instacart, Mixpanel, Teespring, Optimizely, Coinbase, Docker, and Weebly) at the time worth $9B will be worth at least $27B. 3. The YC Winter 2015 batch - worth at the time around $0—will be worth at least $3B.<p>One person, Boston-based VC Michael de la Maza, agreed to bet $100,000 against Altman, with the loser agreeing to donate the money to a charity of the winner’s choice.<p>One year to the deadline, what’s the status?<p>I checked the known public valuation of the mentioned companies, using news sources and company announcements. Another tool was YC’s valuation list (https:&#x2F;&#x2F;www.ycombinator.com&#x2F;topcompanies&#x2F;). If you have better data, I’m happy to edit accordingly.<p>1: Top US (100-&gt;200) Uber: 72 Palantir: 20 Airbnb: 31 Dropbox: 7 Pinterest: 12 SpaceX: 30.5<p>Total: 172.5<p>2: Mid-Stage (9-&gt;27) Stripe: 20 Zenefits: 2 Instacart: 7.6 Mixpanel: 0.865 Teespring: 0 Optimizely: 0.386 Coinbase:- 8 Docker: &gt;1.3 Weebly: 0.365<p>Total: 40.516<p>3: YC Winter 2015 (0-&gt;3) GitLab: 1.1 Equipment Share: Somewhere between 0.2-0.6 (based on neighboring companies on YC list) Atomwise: 0.1-0.2 (based on Scribd valuation on YC list) Razorpay: 0.1-0.2 Qventus: 0.1-0.2 GrubMarket: 0.1-0.2<p>Total: 1.7-2.5

2 comments

Alex3917over 6 years ago
To estimate how much each of these companies are worth on Jan. 1st 2020, you&#x27;d need to wait until each of them raise their next round after that date or have a liquidity event and then do some kind of regression. I&#x27;d say he&#x27;s on track to win based on this, or at the least even if he loses on a technicality he&#x27;ll have come incredibly close.
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softwaremanover 6 years ago
He will win
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