Chapter
Investor Interest Pushes Startup Valuations to New Highs
52:09 - 59:33 (07:24)
With interest rates going up and negative real interest rates, people are pushing the envelope and seed funds are looking at multiples that they weren't considering previously. Early stage angel investors are now looking for higher returns on their investments and the price of technology platforms is being decoupled from real customers, usage, and use cases.
Clips
The Tiger Fund raised a new $12 billion fund which has resulted in a lot of liquidity leaving the system while the liquidity that remains is waiting for opportunities in times of distress.
52:09 - 53:50 (01:41)
Summary
The Tiger Fund raised a new $12 billion fund which has resulted in a lot of liquidity leaving the system while the liquidity that remains is waiting for opportunities in times of distress. The ecosystem is in the beginning stages of a process that will take some time to work its way through.
ChapterInvestor Interest Pushes Startup Valuations to New Highs
EpisodeE84: Markets update, crypto collapse, Russia/Ukraine endgame, state of the podcast
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The new valuation levels for high-growth companies range from 20 to 30 times ARR, and the best of the best can achieve this valuation with a growth rate of three times year over year.
53:50 - 54:47 (00:57)
Summary
The new valuation levels for high-growth companies range from 20 to 30 times ARR, and the best of the best can achieve this valuation with a growth rate of three times year over year. Founders should consider this when raising money.
ChapterInvestor Interest Pushes Startup Valuations to New Highs
EpisodeE84: Markets update, crypto collapse, Russia/Ukraine endgame, state of the podcast
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Investors are moving towards investing in actual builders who have discipline and doing a better job with personal balance sheets.
54:47 - 56:07 (01:19)
Summary
Investors are moving towards investing in actual builders who have discipline and doing a better job with personal balance sheets. Angel investors and seed funds are now asking about the multiples before investing in speculative stuff.
ChapterInvestor Interest Pushes Startup Valuations to New Highs
EpisodeE84: Markets update, crypto collapse, Russia/Ukraine endgame, state of the podcast
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The price of cryptocurrencies has been decoupled from the level of progress in the space and people are not valuing them based on real customers, real usage and real use cases.
56:07 - 57:58 (01:51)
Summary
The price of cryptocurrencies has been decoupled from the level of progress in the space and people are not valuing them based on real customers, real usage and real use cases. Additionally, a group of investors and founders who have only experienced an up market are creating unrealistic expectations for growth.
ChapterInvestor Interest Pushes Startup Valuations to New Highs
EpisodeE84: Markets update, crypto collapse, Russia/Ukraine endgame, state of the podcast
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The rise in interest rates highlights the problem of over leveraging in the cryptocurrency market, which can lead to investors getting margin-called and wiped out.
57:58 - 59:33 (01:35)
Summary
The rise in interest rates highlights the problem of over leveraging in the cryptocurrency market, which can lead to investors getting margin-called and wiped out. When there are negative real interest rates, investors tend to push the envelope, and the crypto space works as a liquidity sponge that can be easily affected by these situations.