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🙄🙄🙄 
It’s amazing to me that with SAAS companies trading at 15-30x sales, with the terminal values asymptotically approaching 100% of enterprise values, that people still spout this nonsense about public markets not embracing or valuing hyper growth. It’s juvenile.
What if instead of public markets being dumb, public markets are smart. Might want to give that one a shot.
Will public markets get things wrong? Of course. But to believe they systematically undervalue growth, particularly in an era where growth is craved, isn’t some novel insight. It’s just wrong.
From the WSJ article. This neither proves nor disproves anyone’s point. It’s just a fact.
“Private investments in six of the 10 best-funded U.S. tech startups to go public since 2015 have fallen from the peak levels they hit in funding rounds before the companies’ stock debuts”
“Private investments in six of the 10 best-funded U.S. tech startups to go public since 2015 have fallen from the peak levels they hit in funding rounds before the companies’ stock debuts”
What’s interesting about 2015 is @fredwilson wrote a series of posts that year about growth orthodoxy in startups, and private markets disdain for public market investors.
Profits vs Growth
“These experiences lead me to question the orthodoxy in the world of technology that says if you are not investing heavily in growth (and losing money) then you are not maximizing the potential value of your business over the long haul.” avc.com/2015/06/profit…
“These experiences lead me to question the orthodoxy in the world of technology that says if you are not investing heavily in growth (and losing money) then you are not maximizing the potential value of your business over the long haul.” avc.com/2015/06/profit…
From a spectacularly titled post on July 2, 2015:
“Maybe they do understand your business”
avc.com/2015/07/maybe-…
“Maybe they do understand your business”
avc.com/2015/07/maybe-…
🔥🔥🔥
