@paulg Maybe the success was because they weren’t solely in it for the money?
Founders of a startup growing say 7x/year are often pleasantly surprised when I point out that their net worth therefore also is.
-
-
-
@paulg or at least party.
End of conversation
New conversation -
-
-
@paulg wouldn't it be more since the value of the company is at a multiple of (revenue) growthThanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
@paulg are you saying that if I grow 30% y/y the whole value of my startup also do? Sounds good.Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
@paulg shouldn't the expected growth already be priced in? a startup that expects to grow 7x a year, and does, shouldn't increase in value -
@michael_yu@paulg Don't be so short sighted. This is paulg. He knows all. This "expectations" stuff is for imbeciles.
End of conversation
New conversation -
-
-
@paulg I think this is because founders value below market. Starting from nothing, it's always harder to comprehend valuations. -
@hirokitakeuchi Whatever you think the multiple of revenue should be, the co is 7x more valuable if revenues grow 7x. - Show replies
New conversation -
-
-
@paulg that makes me feel good.Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
@paulg What is a realistic discount rate for an early stage startup? Some of that 7x is probably already baked into valuation I'd think?Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.