{"id":6979,"date":"2015-03-30T18:52:06","date_gmt":"2015-03-30T23:52:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6979"},"modified":"2015-03-30T18:52:06","modified_gmt":"2015-03-30T23:52:06","slug":"its-just-a-question-of-whose-capital-will-be-destroyed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6979","title":{"rendered":"It\u2019s Just a Question of Whose Capital Will Be Destroyed"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/03\/30\/insane-startup-valuations-whose-capital-will-be-destroyed\/\" target=\"_blank\">It\u2019s Just a Question of Whose Capital Will Be Destroyed<\/a><\/h3>\n<p>The amount of money investors have plowed into startups has reached record highs. In 2014, investors of all kinds, from angels and VCs to big asset managers, invested $48.35 billion in startups, \u201conly\u201d the third highest year on record, but the highest since the crazy bubble years 1999 and 2000 when investors blew $55 billion and $105 billion\u00a0respectively, even as the dot-com bubble was already imploding. Investors at the time were just a little slow in giving up hope.<\/p>\n<p>But the \u201cvaluations\u201d are getting crazy. The price at which new investors buy into a startup during a round of funding determines the \u201cvaluation.\u201d As investors have become more eager with other people\u2019s money, and as hedge funds and big asset managers have jumped into the fray in late-stage rounds, they have sent valuations on vertigo-inducing trajectories.<\/p>\n<p>Slack, one of the\u00a0<em>innumerable<\/em>\u00a0startups that over the years have claimed to have found the successor to corporate email, just inked a new deal with investors for $160 million in funding that jacks up its valuation to $2.76 billion. The round is expected to close over the next few weeks. \u201cPeople familiar with the matter\u201d purposefully leaked this to the\u00a0<a href=\"http:\/\/blogs.wsj.com\/digits\/2015\/03\/26\/slacks-valuation-more-than-doubles-to-2-8-billion-in-five-months\/\" target=\"_blank\">Wall Street Journal<\/a>\u00a0as part of the mega-hype that the startup scene needs in order to attract ever more money.<\/p>\n<p><span class=\"Apple-style-span\">Slack launched its app only about a year ago. At the time, it wasn\u2019t even in the\u00a0<a href=\"http:\/\/graphics.wsj.com\/billion-dollar-club\/\" target=\"_blank\">Billion Dollar Startup Club<\/a>, that ever growing group of startups with valuations over $1 billion. But in October, it raised some money at a valuation of $1.12 billion. And five months later, its valuation jumped 146%.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s Just a Question of Whose Capital Will Be Destroyed The amount of money investors have plowed into startups has reached record highs. In 2014, investors of all kinds, from angels and VCs to big asset managers, invested $48.35 billion in startups, \u201conly\u201d the third highest year on record, but the highest since the crazy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[39,109,536,4522,1138,4430],"class_list":["post-6979","post","type-post","status-publish","format-standard","hentry","category-economics","tag-assets","tag-capital","tag-money","tag-startups","tag-stock-market","tag-valuations"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6979"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6979\/revisions"}],"predecessor-version":[{"id":6980,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6979\/revisions\/6980"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}