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by rory096 3882 days ago
Is this an example of the misleading late-stage valuations Sam Altman mentioned recently?[1] What were the terms of the latest raise?

[1] http://blog.samaltman.com/the-tech-bust-of-2015

1 comments

I would say, No. Square's trajectory has definitely diminished. $300m in margin on $1b in revs should easily support a higher valuation. And most of the preferential terms apply to acquisitions, not IPOs. The "ratchet" is at the $12 midpoint so likely will not come into play. The late stage investors are not going to make money until Square goes above the $15.46 they invested at.