Shader: Overvalued payments startups risk crashing the broader market
Danny Shader · a16z Podcast | Raising Money and Valuing Startups -- What Happens When Things Don't Go As Planned? · Jan 2, 2019 · at 7:12
Danny Shader, founder and CEO of PayNearMe, warns about the fallout from overinflated valuations in the startup ecosystem.
0:00 / 0:11exact quote · 11.0s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“My biggest fear just as an entrepreneur trying to run things rationally is that some of those guys are going to crash and burn and drag the entire rational segment of the market down with them.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Danny Shader
Shader: I actively attempt to lower investor valuation offers
“When people have proposed things that are sort of too high, I've tried to signal bringing them down, which is a delicate Balance.”
Shader: Structured high valuations harm employee common equity long term
“And it seems like that has really negative implications for the new common shareholder employee who joins, which, you know, I'm old fashioned, but that seems like that's not necessarily an interest of the company long term.”
Shader: PayNearMe intentionally located away from transit to screen candidates
“To the extent that we even do things like we don't have an office near a train station, right? Intentionally, like we're sort of self screening for that.”
Danny Shader: Tech market boom will end badly for overconfident workers
“I think this party ends and it will have an ugly end and I'll, and there will be people who have an expectation for what their lifestyle will be and have dialed in a bunch of very important life decisions to that who are going to not be happy with what happens…”
Shader: Overreaching for valuation creates severe risks unless future rounds guaranteed
“I don't know that stretching for evaluation is a great idea. Unless you have incredible certainty on your deal. And you know, absolutely know that there's going to be another round behind it at a higher valuation, either because you're pressing about the overa…”
Danny Shader: Over-promising during fundraising breaks trust during crisis
“Nothing will set up that relationship to be bad during bad times as if you over-promised when you were raising money and then disappoint, because now you've broken this bond of trust you need when you're, you know, weathering the inevitable storms that are goi…”