The hottest Valuations Substack posts right now

The 'Canada Rule' advises startups to focus on one or two important things rather than chasing every opportunity.
Pre-money valuations in Europe are showing growth across different stages, indicating market resilience.
VCs are using 'Dry Powder' in convertible bridge rounds, showcasing creative financing strategies by founders.

Wise disrupted the costly traditional cross-border payment system by using a peer-to-peer platform and offering transparent, low fees.
The company earned $1.2B in revenue in 2021 with a significant portion coming from its margin on FX transfers.
Wise's growth and profitability are driven by its innovative approach to simplifying and optimizing cross-border transactions.

NBA teams are now worth an average of $4.4 billion. This shows how valuable basketball franchises have become.
The Golden State Warriors are the most valuable team at $8.8 billion, followed by the Knicks and Lakers. These teams are leading the pack in terms of worth.
Real estate development is becoming more important for NBA teams. It seems teams are trying to boost their value through property investments.

Decentralisation theatrics don't necessarily protect against legal issues with airdrops.
Airdrops can lead to early liquidity for team members and investors, impacting valuations.
Inflated user counts from airdrops may not reflect genuine user ownership or value creation.

Valuation of a company is determined by factors like the stage of the company, funding competition, leadership team experience, market size, and financial performance.
The VC investment model is facing challenges due to factors like high interest rates, late-stage investments yielding lower returns, and the importance of profitability.
Companies don't always need to calculate their value when fundraising; options like convertible notes and SAFEs allow for postponing valuation to later rounds to avoid potential dilution.

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The 2023 Enterprise Tech 30 saw a high number of new companies due to AI and a shifting market landscape.
Generative AI is rapidly impacting the tech industry, with many companies leveraging its capabilities.
Product-led growth is becoming a common approach for companies, with many on the list following this model.

Repricing employee stock options can be a way to boost employee morale and engagement during challenging times.
Realigning incentives through option repricing can help retain top talent and attract new talent in a competitive job market.
When considering repricing stock options, companies should focus on retaining trust, transparency, and fairness within the workforce.

Analysis of Q1 public cloud software earnings provides insights for startup entrepreneurs on managing their businesses.
Indications suggest a potential bottoming phase in the software industry with hopes for reacceleration by the year's end.
Metrics such as revenue performance, growth, and sales efficiency play key roles in evaluating the success of a quarter for cloud businesses.

Venture valuations are currently 60% higher than expected based on the amount of capital invested.
Valuations and capital invested in venture typically trend together, with one affecting the other.
The concept of 'shadow price' in venture capital highlights a discrepancy between actual transaction prices and hypothetical market-clearing prices.

Insurtech equities rebounded in 1H 2023 but are still down from peak 2021 valuations.
Insurtech carriers outperformed legacy P&C carriers in Q2, showing stock-specific improvements.
Legacy brokers are performing well with ongoing premium growth and resilience to higher interest rates.

Cursor, an AI coding tool, has impressive annual revenue of $100 million but is valued at only 25 times that amount. This valuation seems low for such a fast-growing company.
In comparison, other AI companies like Anthropic and OpenAI are raising funds at much higher valuation multiples, around 42.4x to 68.5x their revenue.
Investors might find Cursor a more appealing option due to its lower valuation compared to its peers, making it an interesting investment opportunity.