40x of ? they don't have any disclosed revenue numbers .
$100m/ $4B is not 40x valuation it is just that they are diluting only 2.5% for that $100m . It just means they need only relatively small amount money and are in good spot financially and can afford to dilute very less.
Had they raised $500m on $4B post or $1B on $4B post the valuation is not changing to 8x or 4x.
Why should they raise more than they need because their valuation is high? Should they raise $200m if the valuation is $8B ? If they need only $100m in capital , they only need to only dilute that much.
Another way to put it is just "someone bought shares at this price." which isn't really news.
the private market uses lingo that is different from the public markets, and then brags about it if convenient to do so, such as for other clout. amounts undisclosed if not convenient, such as if its too low or a "down round" which just means "someone bought shares at a lower price than the last person" which is also not really news in the public markets, but supposedly damning in the private markets.
There are risks with huge valuations like this: you need to keep growing your valuation. Down rounds[1] can be a death sentence, especially as we're most likely entering a recession.
$100m/ $4B is not 40x valuation it is just that they are diluting only 2.5% for that $100m . It just means they need only relatively small amount money and are in good spot financially and can afford to dilute very less.
Had they raised $500m on $4B post or $1B on $4B post the valuation is not changing to 8x or 4x.
Why should they raise more than they need because their valuation is high? Should they raise $200m if the valuation is $8B ? If they need only $100m in capital , they only need to only dilute that much.