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What is Square or any startup really worth?

19 点作者 rfjedwards超过 9 年前

6 条评论

iaw超过 9 年前
There&#x27;s an inverted Ponzi dynamic to this. In a Ponzi scheme, the earlier gain the most and the later the least. In this dynamic, the later are guaranteeing their returns at the expense of the earlier.<p>It makes sense because of the necessity of these companies to raise capital, but it also has a somewhat ironic tinge.
franbulax超过 9 年前
It is worth what someone is willing to pay for it. The correct question is: under what conditions is it worth it? Many valuations seem to rely on investor N+1 being even more gullible than investor N.<p>You can&#x27;t defy gravity though; eventually someone is going to want to get a dividend. It must be more profitable to own shares in a firm than to not once the chain of fools has run out.
rdl超过 9 年前
I&#x27;m confused here -- the argument is that a ratchet which is clearly going to trigger in the IPO is better for employees and other shareholders than a down round? Assuming the odds of IPO are 100%, and if we could assume the down round would be at the same price as the effective price due to ratchet, is there a difference?<p>I guess there might be other provisions in earlier rounds of equity which would be triggered by a down round vs ratchet in IPO, but is this mainly a distinction of optics?
loginusername超过 9 年前
Must answer question: Worth to whom?<p>Not every potential buyer will agree on the &quot;worth&quot; of X.<p>Ultimately X is not worth anything unless and until X is sold.<p>Perhaps the tense is wrong.<p>Not what _is_ X worth, but what _will be_ the worth of X (when X is sold).<p>In the end, &quot;worth&quot; is &quot;price paid&quot; (by some buyer).
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puredemo超过 9 年前
Whatever it is acquired for. ;)
dang超过 9 年前
Url changed from <a href="https:&#x2F;&#x2F;recode.net&#x2F;2015&#x2F;11&#x2F;13&#x2F;how-startups-ratchet-up-their-valuation&#x2F;" rel="nofollow">https:&#x2F;&#x2F;recode.net&#x2F;2015&#x2F;11&#x2F;13&#x2F;how-startups-ratchet-up-their-...</a>, which points to this.