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by ineedasername 1307 days ago
Seems way too high. A 10x valuation like this is usually for tech related businesses. MrBeast is sort of tech adjacent, producing content that leverages social media platforms, but isn’t actually a hockey-stick growthable venture (coined that word myself; also yes, hockey sticks occur in viral growth for content popularity but MrBeast has arguably already passed that phase of his content business)

The types of businesses mentioned for expansion using the invested funds don’t see that many hockey sticks. And restaurants are horribly risky and failure prone: they’re heavily influenced by fads and economic circumstances. He might very well pull it off, it’s early days in his existing efforts to talk about longevity, but it’s all risky.

2 comments

10x revenue multiple is not crazy for content. Content has zero marginal costs like software.
It’s an investment for expansion though and he’s already seen his hockey stick growth. Usually the 10x is in anticipation of that future growth. MrBeast is already established on that front.

But I should refrain from judging too much. Details on what he’s seeking for investment terms and what he’s proposing for business growth were too thin here for more than mild skepticism.

In a vacuum that is true, but for MrBeast in particular his entire shtick around content is „look at me spending outrageous amounts of money on this video“, there are probably Holywood movies out there that have a better revenue/cost ratio than some of his stuff.
Content, brand and IP can 100x easily. It's just that they don't on average. Like with startups.