Exceptional breakdown of the disconnect between paper valuations and real outcomes. The zombie company trap is so painfully true, watching founders stuck between impossible growth expectations and reality. I saw this firsthand at a prev startup that raised at crazy multiples but couldnt find an exit path becuase the cap table was a mess.
"Can’t raise a down round because the optics are brutal. Can’t sell because the markup was fake. Can’t IPO because public investors would laugh."
Are we talking about Thinking Machines Lab?
Or Unconventional AI?
Or Humans&?
For the record, each raised huge money based on the charisma of the founding teams, and vague promise of [something AI; well, actually, nevermind].
It was $2B at $12B valuation, $475M at $4.5B valuation, and $480M at $4.5B valuation, respectively. Absurd by any standards.
Let's just wait till brutal optics, fake markup realization, and laughable IPO dreams kick in.
Unless the founding team starts jumping ship. Oh, wait, that ship has sailed (pun intended).
I think the exit price v. valuation is more of a commentary of Wall Street's valuations v SV's valuations. And Wall Street plays with real money.
Exceptional breakdown of the disconnect between paper valuations and real outcomes. The zombie company trap is so painfully true, watching founders stuck between impossible growth expectations and reality. I saw this firsthand at a prev startup that raised at crazy multiples but couldnt find an exit path becuase the cap table was a mess.