Is It Seriously A Question?
Crunchbase reporting this morning …
SoftBank’s Son to invest in Uber…or Lyft
SoftBank CEO Masayoshi Son told investors that he wants to invest in either Uber or Lyft as part of the firm’s strategy for the U.S. ride-hailing market. Son’s statement comes amid a period of high-level flux for Uber, which is still without a CEO as founder Travis Kalanick reportedly explores ways to reassert control at the company.
Well – you know who I am routing (sic) for.
Let’s First Agree Definitions
The article on CB Insights tells us that …
Collectively, US unicorns are worth approximately $360B.
That sentence is wrong, misleading and can cost you money if you aren’t careful.
Collectively, US unicorns are valued approximately $360B.
CHICAGO — December 1, 2015–Basecamp is now a $100 billion dollar company, according to a group of investors who have agreed to purchase …
[ Source : Signal v. Noise — Medium ]
I know – it’s an old piece, but the message is no different. Jason Fried – Founder and CEO of Basecamp in fine form demonstrating the inane shenanigans of insider investing to boost start up valuations. If Basecamp goes belly up – he has a second career at the Onion.
Basecamp’s Jason Fried proving that you too can be a Unicorn.
A masterful piece worthy of the Onion, made stronger by not actually being on the Onion.
CHICAGO — December 1, 2015–Basecamp is now a $100 billion dollar company, according to a group of investors who have agreed to purchase 0.000000001% of the company in exchange for $1.
and why is it worth that much ? Well – there are many reasons, including
Basecamp will attract twelve billion users by the end of 2016.
How will the company overcome the fact that there are only 7.3 billion people alive today? “Why limit users to people?” said Bhatnagar.
Read it all here.
The hard truth is that when we employ the idea of the Unicorn as a heuristic to inspire, guide, and shape our limited, priceless effort, imagination, time, and creativity, we are simply limiting ourselves to seeking magic over meaning, convenience over rebellion, riches over worthiness, myopia over a point: all that is the textbook definition of settling for mediocrity.
Here’s what the idea of the Unicorn really does: it infantilizes us with magical fairy dust thinking, focuses us on the short term, prioritizes making money over creating value, and demands that we create instantaneously crowd-pleasing blockbusters — not devote ourselves to our masterpieces.
[ Source : The Unicorn Bubble — Bad Words — Medium ]
You know my opinion about Unicorns – right ? Others seem to be getting on the train …
I am back in Boulder after spending much of the last week in San Francisco at Dreamforce. I’m glad to be back, as I find the current climate in the Bay Area somewhat amusing. The tech media writes and talks breathlessly about Unicorns. Startup employees get obsessed with valuations, rather than per share price value.
“Warren Buffett’s Berkshire Hathaway took 18 years to become a Unicorn” – good stuff – click through for the 411.
[ Source : | Bart Lorang , CEO – Full Contact]
I have a business worth $1,000. If you give me $1,000,000 dollars for 10% of my shares – that ‘values’ my company at $10,000,000 – overnight – BUT – is it really worth 1,000 times as much = just because I have convinced you that with $1 million dollars – we can conquer the world ?
More importantly – 3 months down the line – you and I convince a new dude to drop another 10 million dollars into the business – and we give him 10% of the company ….
Over night – my company is now ‘worth’ $100 million – and my original investor’s investment is now ‘worth’ $10 million – a ten fold ‘return’ in 3 months !
See what I did there ?
I am not saying that the Unicorns aren’t going to turn into something great. I am saying that there is zero oversight on this process – rather a bunch of insiders trading on Futures – with no watchdog. What could possibly go wrong ?
A curated leaderboard of companies that were at one point privately worth $1B or more and subsequently exited, either by acquisition or IPO.
Seems like a lot apparently !
[ Source : Crunchable ]