Yawning at numbers
Inspired by the current investment mania around San Francisco scooter companies, he makes a very good point. Being fixated on the paper valuation of a tech company distracts from the true value it drives, both in terms of potential outcome for investors, and its impact on the world.
“Sure the price that [startups] can finance themselves is interesting. But not more interesting than the products and services they are bringing to market, how they are building their teams and cultures, and the underlying technologies they are using to do that…
"It leads to a culture of bragging and topping one another and an obsessive focus on valuation. I’ve heard founders say “if I don’t raise at a billion or more, we will be seen as a failure.” How ridiculous is that? And yet you can see how they can get to that place.”
I often tune out when a discussion turns to the amount a startup has raised. It’s just numbers. I can look these figures up on Crunchbase
if I need them, but more often than not, a company’s theoretical price on one day just isn’t that important.
What is that company doing to make the world a better place? That’s the more interesting thing, and also the more important thing. It’s reassuring to know that at least some investors agree.