Chapter
The 5-year Window in Startup Valuations
1:14:48 - 1:20:17 (05:28)
The ease of raising money in the past few years led to a distorted understanding of startup valuations and growth. Founders adopted a short-term view of their net worth, with a lack of understanding of how this valuation will change in the long term.
Clips
The venture world follows a sawtooth pattern; risk-on happens slowly but when it crashes, it happens all at once resulting in a painful experience.
1:14:48 - 1:16:18 (01:29)
Summary
The venture world follows a sawtooth pattern; risk-on happens slowly but when it crashes, it happens all at once resulting in a painful experience. Valuation multiples are a dangerous hack proxy and should be limited to 10x, an upper limit over that is silly.
ChapterThe 5-year Window in Startup Valuations
Episode#651: Legendary Investor Bill Gurley on Investing Rules, Finding Outliers, Insights from Jeff Bezos and Howard Marks, Must-Read Books, Creating True Competitive Advantages, Open-Source Strategies, Adapting Mental Models to New Realities, and More
PodcastThe Tim Ferriss Show
This podcast discusses the risks of growth at all costs, and how founders who were accustomed to easy fundraising and high valuations in the past few years may not be prepared for the current economic climate.
1:16:18 - 1:20:17 (03:58)
Summary
This podcast discusses the risks of growth at all costs, and how founders who were accustomed to easy fundraising and high valuations in the past few years may not be prepared for the current economic climate. It also touches on how some founders focus on short-term net worth gains rather than long-term success.