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Ask HN: How do founders feel about testing a new form of company valuation?

1 pointsby shalbertover 10 years ago
Considering that the valuation&#x27;s of many startups are derived from the number of users, I wonder what the view&#x27;s of entrepreneurs are in regards to the change of development-indicators. Once upon a time, profits and revenue were most important, and people didn&#x27;t have nearly as much pleasure from what they bought then, as we do today but, simultaneously money circulated through a company in a logical fashion. Now however, everything seems to be changing, or maybe it has already changed. Does anyone think that the new system of using user growth as the most important development-indicator is flawed? Or, is it better to delay the need for monetization, and focus more on extremely high valuations based on user growth even though money is, in a way, being poured down the drain a thousand times faster than its being created? I know that mentioning valuation might bring forth comments relating to how entrepreneurs want their company to grow in ways other than valuation, and in some cases may not care for valuation at all. Yet, I still feel it&#x27;s important to mention, because even if you&#x27;re not caring about the valuation for your own sake, nor the sake of user growth- directly- the valuation is still you&#x27;re most significant bargaining chip when you try to collect money to achieve those other, more prominent, goals.<p>Just to be clear, I am not denouncing this new method. In fact, I think it&#x27;s great! The users finally are getting what they deserve- a quality product. However, I want to hear what other people think of it.

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