Hacker News new | ask | show | jobs
by sib 2958 days ago
I think the idea is that, since RH hasn't been acquired or gone public, they haven't yet "ended up" with a high valuation. It could all go away before the investors can get liquid (e.g., Theranos for a pathological example).
1 comments

There are deep secondary markets around late-stage venture-backed companies. Robinhood investors seeking to exit around this valuation have options.
Just to clarify, we're debating whether Robinhood is a success and the measure of success being used is "can early investors cash out for a gain?"

What if every company checked that box and couldn't provide lasting value beyond that? Do we still consider this a success because we're posting on a forum run by a VC?

> What if every company checked that box and couldn't provide lasting value beyond that?

How long do you think that would be a sustainable situation? A high mid to late-private stage valuation is only supported by the promise of subsequent valuations.

If every company stopped achieving those subsequent valuations, it would feed back into the private valuations.

> What if every company checked that box and couldn't provide lasting value beyond that?

That would mean an overheated late-stage market. (Which recent IPO data haven’t yet made obvious is a thing.)

Ignoring any one specific company for a moment, an investor consistently able to invest early and time their exits near the peak of each company's valuation would be a roaring success.
That's my point. We're saying that Robinhood is a success as a company because an early investor would have had a nice exit? Thats our "success" barometer?

I'm going to call BS on that one.