Chapter

The Harsh Reality of Tech Valuations in Today's Market
Startups that raised at high valuations in the past six to eight months should top off their funding rounds as public market investors are now taking a 60% discount on tech stocks. Companies with overfunded valuations that are under-executing and burning large amounts of cash will have to face the truth, resulting in a lagging effect that will only appear in fund documents and reports a year or two later.
Clips
The buyers of tech stocks are currently taking a 60% discount to what they were able to buy just four months ago, and this will impact funding and valuations in private markets.
21:07 - 26:18 (05:10)
Summary
The buyers of tech stocks are currently taking a 60% discount to what they were able to buy just four months ago, and this will impact funding and valuations in private markets. Founders are now being asked more about their company's runway and how many months it will take to break even.
ChapterThe Harsh Reality of Tech Valuations in Today's Market
EpisodeE78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Analyzing private valuations and marks can be a challenge while public markets are updated daily, but investors like Jason Lemkin calculate ARR multiples to determine proper valuations.
26:18 - 27:22 (01:03)
Summary
Analyzing private valuations and marks can be a challenge while public markets are updated daily, but investors like Jason Lemkin calculate ARR multiples to determine proper valuations.
ChapterThe Harsh Reality of Tech Valuations in Today's Market
EpisodeE78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The speaker advises continuous fundraising for startups, even after a successful round, to top off and take advantage of favorable valuations.
27:22 - 30:03 (02:41)
Summary
The speaker advises continuous fundraising for startups, even after a successful round, to top off and take advantage of favorable valuations. He also points out the need to calculate the current valuation multiple, which has lowered in recent times from the multiples paid at entry, and to consider both sides of the equation when analyzing a company's growth.