startup valuation

“While we were going through, there was a number that was floating around, like it's like two to three X of the standard valuation. So it definitely, it has a huge impact on your valuation because also like everybody has been pre-vetted so rigorously.”

“Most startups do fail, and you need to make sure that the startups that you do succeed with actually help to cover all the losses that you make otherwise, and if you invest at way too high a price, you're not going to cover all the other failures that you have…”

“I think that they've actually started to rationalize a little bit more.”

“Go get a high valuation. I think it's one of the most detrimental things that happens for these young entrepreneurs. They think it's a game. And the answer is not about just because you can get away with it. You know, you should go get a high valuation. You sh…”

“There was one mistake that was really basically impossible to fix, and it was raising too much money at too high of a valuation”

“That trend is not going to last forever. This boom economy is not going to last forever. Everything's cyclical. I've worked through two recessions so far, and you know, it's going to come back down.”

“The way it works is your fund has a strategy and you say to yourself, do I want to invest in this company? And if I want to invest in this company, then I have a check size. And the check size is usually determined by the fund size, because again, back to our …”

“Lower valuations. Just think a lot of companies are getting themselves into situations that are going to be very hard to get out of. So I think hip checking the valuations probably wouldn't hurt.”

“A lot of companies won't succeed because people hold on artificially to prices that are too high.”

“We will see a correction. I just don't believe it's going to be a sudden correction that will feel like a sort of bubble burst. I think it'll be, you know, more pressure for keeping valuations in some reasonable band that still, compared to 15 years ago, will …”

“Valuation to me can only be useful if it's a meaningful heuristic For future potential cash flows, right? But valuations now are a measure of what that markets FOMO is for that business.”

“A lot of valuations will still crash from here dramatically. And there's probably going to be huge layoffs going into Q one, Q two as well.”

“Down rounds are not problematic. Much more problematic, again, are valuations that that are essentially in exit territory, or far in excess of exit territory. It's really hard to recover from that.”

“But if you look at the, if you look at the data, it's actually not signaling risk, it's signaling advantage. And it's signaling advantage in the sense that the average valuation for the round that you raise after your Sequoia round. So if you raise a seed from…”

“So I'm not trying to aim, like get the highest valuation possible. I think it's dangerous and what we've seen in the past couple of years that it can lead to down rounds and those are really annoying or unmotivating to people.”