[vladislav]

It's strictly speaking correct in that the $5B valuation was established purely on the secondary market and only from sales of shares of investors (not common holders), which doesn't give the company any VC funding. Also $1.3M in seed funding is a rounding error to get to $5B.

[notyourday]

This smells like a sophisticated investor pump and dump: sell a small number of shares for a stupid amount to use the new valuation as the marker.

I would trust this number far less than a number one would arrive at a new VC round

[vladislav]

Unlikely due to the buyers also being sophisticated. "Sequoia and Steadfast Financial bought shares at a $5 billion valuation from some of Zapier’s original investors."