Why Billion-Dollar Valuations Don’t Matter


techcrunch.comIn the last few years, there’s been a massive decoupling between private and public markets. A Goldman Sachs report shows that since December, five of the seven most recent IPOs for billion–dollar startups came in at valuations equal to or below their pre-IPO valuations.

One of the most concerning bi-products of this decoupling is the migration away from focusing on underlying business metrics toward total and utter valuation optimization.

Let’s take Slack for example. No one would argue that their pivot didn’t work or that it’s not a fantastic product with lighting fast adoption (OpenView is an avid user). But, you’ve got to be a little skeptical any time an SaaS company is valued at 100x, even with an amazing product and opportunity.

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