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Square’s IPO Terms Put Valuation Below Latest Funding Round

116 点作者 pierrealexandre超过 9 年前

15 条评论

JonFish85超过 9 年前
To me the biggest question is what, exactly, Square does? Years ago they were the company that made it easy for people to accept credit card payments who otherwise wouldn&#x27;t want to &#x2F; be able to (mom &amp; pop stores, farmers&#x27; markets, etc).<p>But you don&#x27;t build a multi-billion dollar company just there, it seems that the margins are too thin and the volume just isn&#x27;t there to make up for it.<p>Since then, they&#x27;ve done their Point of Sale device (not just the dongle), which I haven&#x27;t heard much about. They also have their small-business-loans side--are they a bank &#x2F; lending agency? They say that it&#x27;s technically not a loan, but it&#x27;s close enough for me.<p>They also do (did?) payroll services for small businesses?<p>I guess when I look at them I see them with a lot of irons in the fire, but with none of them doing particularly well. To me it seems like they&#x27;ve tried a bunch of things, none of them has really stuck, so they want more money to...do what? Keep trying them?<p>Full disclosure, I worked for a company for a few years that was in a similar-ish space, so I am probably biased against them. We fought a lot of similar battles, of trying to create a margin inside of credit card margins, and I&#x27;m fairly convinced that it&#x27;s not a way to scale a billion dollar business.
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akg_67超过 9 年前
I am not surprised. Majority of tech IPOs in past year are trading below or near IPO prices. The investors in public market have learnt from the past. Most of these companies are coming to public market later when most of the upside has already been squeezed by private investors. Most IPOs come across nothing more than offloading to greater fools. Buying at IPO makes no sense. Wait till prices stabilize after the IPO at actual value (new lows) before buying.
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sjbase超过 9 年前
To me it makes sense that post-IPO market cap would be lower than private valuation. Investors in public companies are well known for having short-term interest: &quot;we want growth in every metric, and we want it next quarter.&quot; Anyone who has worked for a public company has felt this pressure.<p>VC, PE, etc. arguably incorporate more information about potential future (2 year, 3 year, 10 year) growth than public investors.<p>Maybe we should stop comparing the two valuations so equally?
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drcode超过 9 年前
Technically, given that the last funding round had a stipulation saying &quot;We&#x27;ll give you more stock if the valuation falls short&quot; I think it&#x27;s arguable whether the public figures for the last round really represent a true valuation number.<p>I think a better headline would be &quot;Journalists who reported the last valuation didn&#x27;t dig enough to see that the contract actually stipulated a lower valuation.&quot;
ogezi超过 9 年前
Square probably has solid fundamentals but a mixture of factors has caused this problem in which they find themselves: bad performance of other tech IPOs so far this year and the nature of its CEO&#x27;s job. The performance of other tech IPOs this year has left a bad taste in the mouths of the public markets. Jack Dorsey is also the CEO of Twitter and is not fully committing to either Square or Twitter. I think they&#x27;ll do fine but unfortunately I&#x27;m not the market.
pbreit超过 9 年前
Crazy that it&#x27;s around Stripe&#x27;s valuation and crazier it hasn&#x27;t gotten in to Stripe&#x27;s business yet.<p>Typically $300m in margin on $1b in revs would get you $6-8b but there&#x27;s just too much negativity on Square right now with the part-time CEO, stream of negative media and chaotic product set.
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mpdehaan2超过 9 年前
Seems to say current valuation is below previous valuation.<p>The really bad scenario is &#x27;current valuation is below current levels of funding&#x27;<p>So it sounds like they are ok, they aren&#x27;t just going to reap as large of rewards. Crunchbase says they have taken $590.5 million in 9 rounds, so that&#x27;s still a crazy huge amount to be valued at.
myth_buster超过 9 年前
<p><pre><code> Many highly valued companies armed with private capital have stayed away from the IPO market. </code></pre> I think this might become a norm in the short term<p><pre><code> * as the late stage funding rounds appear inflated, * an FED rate hike seems imminent and * arguably, public market may not have the same risk&#x2F;return appetite as those investing in late stage rounds.</code></pre>
rory096超过 9 年前
Is this an example of the misleading late-stage valuations Sam Altman mentioned recently?[1] What were the terms of the latest raise?<p>[1] <a href="http:&#x2F;&#x2F;blog.samaltman.com&#x2F;the-tech-bust-of-2015" rel="nofollow">http:&#x2F;&#x2F;blog.samaltman.com&#x2F;the-tech-bust-of-2015</a>
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trjordan超过 9 年前
If you think there&#x27;s a tech bubble on because the latest private round came in higher than the IPO, consider what the explanation would be if the IPO valuation was 3x the VC round.
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yc1010超过 9 年前
IMHO Square has more of a real business than Facebooks and Twitters of this world do and actually have solved real world problems.
reviseddamage超过 9 年前
imo Square should have stuck to POS only and dominated that field completely. They should worked that field till saturation. Once they were near to complete, use the line item records from individual customers at POS and convert to rewards. Once that is saturated, then move to e-commerce for P2P.
spdionis超过 9 年前
Can&#x27;t read the full article without registering. Any alternative source?
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ogezi超过 9 年前
Square probably has solid fundamentals but a mixture of factors have caused this: bad performance of other tech IPOs so far this year and the nature of the CEOs job. I think they&#x27;ll do fine but unfortunately I&#x27;m not the market.
jgalt212超过 9 年前
Expanding losses, part-time CEO, what&#x27;s not to love?