A Startup Once Valued at $22 Billion is Now Worth Nothing (techcrunch.com) 30
An anonymous reader shares a report: Byju Raveendran, the founder of the embattled edtech group Byju's, acknowledged on Thursday afternoon that he made mistakes, mistimed the market, overestimated growth potential and that his startup, once valued at $22 billion, is now effectively worth "zero."
Speaking to a group of journalists, Raveendran said the company's aggressive acquisition of more than two dozen startups to expand into new markets proved fatal when financing dried up in 2022. Byju's was planning to go public in early 2022 with several investment bankers giving the firm valuation as high as $50 billion, TechCrunch reported earlier.
He alleged that many of his more than 100 investors had urged him to pursue aggressive expansion into as many as 40 markets. But, he added, those very investors got cold feet when global markets tumbled following Russia's invasion of Ukraine, sending the venture capital market into a downward spiral.
Speaking to a group of journalists, Raveendran said the company's aggressive acquisition of more than two dozen startups to expand into new markets proved fatal when financing dried up in 2022. Byju's was planning to go public in early 2022 with several investment bankers giving the firm valuation as high as $50 billion, TechCrunch reported earlier.
He alleged that many of his more than 100 investors had urged him to pursue aggressive expansion into as many as 40 markets. But, he added, those very investors got cold feet when global markets tumbled following Russia's invasion of Ukraine, sending the venture capital market into a downward spiral.
...but OFF a computer. (Score:3)
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Re:...but OFF a computer. (Score:4, Funny)
You were on a roll, even though it is worth nothing.
Sure, sure (Score:2)
How many of those aquisitions were owned by friends?
Aquisitions are the perfect way to pilfer an overfunded startup.
Just normal capitalism (Score:1)
I've purchased a few stocks that just plain died over the years. It happens. Fortunately, I've had enough successful stocks to offset the duds.
Diversify Diversify Diversify.
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yes I own couple dozen... I still know at least a third of those have value by the three fundamentals of hope, hype and hooey. It's the american way.
Richest man in the world for 7 minutes (Score:1)
Valuation is not value (Score:4, Insightful)
A Startup Once Valued at $22 Billion is Now Worth Nothing
Just like all the others, but this one's valuation now matches its true worth.
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I wish I had 22 bils to piss away.
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It would only get you half a Twitter.
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Today it will get your three or four twitters.
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Indeed.
Nothing to lose (Score:2)
Here is what to do (Score:2)
More importantly (Score:2)
Are the suits ok? Did they all receive million dollar severance packages?
Cascade effect. (Score:2)
First thing I'd probably mention would be a snide comment of "... and nothing of value was lost".
However, startups brought interesting stuff to market. Right now, we don't have the Dockers, the Kubernetes, the Veeams... all we have are companies slurped by capital/equity groups that add nothing but fees. Nothing new is hitting the market, and the DevOps dudes MacBooks are not seeing any new stickers that can be attached to them. It is considered a mark of excellence when one's MacBook Pro is top heavy du
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I'm a big fan of using the Cloud for our infrastructure, because then you do not need to deal with any of the hardware maintenance and you can pay for just what you need.
The problem is that most companies forget that they do not pay for what they need, they get billed for what they use, which can end up being 2x, 3x, or even 10x what they need. A lot of companies, especially startups, do not want to spend any engineering in 'early optimization', or things that you would not need to optimize in a datacenter.
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Well yeah, but actually no.
You act like shrinking you infrastructure to what you need as opposed to what you use was easy. I mean in private cloud, that act would save a lot of cash too and yet people usually don't have the knowhow to do it.
The SQL statements I've seen. A whole A4 page full of inner and/or outer joins. You know what I mean? Using precisely the amount of hardware you need to get a job done very much varies depending on how efficiently you know ho to do that job.
And let's not forget: Neither
Re: Cascade effect. (Score:2)
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Yes, in many case you can't just blindly lift an architecture out of a datacenter and into the cloud because while it might have been designed to scale up, scaling down quickly is rarely part of the design and that's where Cloud is more costly.
In our case, we have a few larger RDS instances, and when they start getting slow queries we work towards moving that data to DynamoDB where things can scale more horizontally and more on demand. There rest of our product code is designed to be stateless and scales up
Not really (Score:2)
when global markets tumbled following Russia's invasion of Ukraine, sending the venture capital market into a downward spiral.
Not really. It's more due to the interest rate increases needed to dampen the inflation caused by excessive Covid stimulus payments. Venture capital markets are extremely sensitive to interest rates, or more accurately the imputed market risk that these rates suggest.
Fantasy Valuations (Score:3)
Growth above all else is cancer (Score:2)
And as we know, cancer will kill its host unless it's stopped.
Yeah but... (Score:3)
The Primary Value of a Startup is its Sale Value (Score:2)
There are two problems here--
First: Very, very, very few investors give a damn about the profitability of a startup's final product. They know the vast majority of startups will fail while producing some minor IP that will get sold to an already successful and consistently stable company. "Startups" are, for the most part, a market of companies and the goal is to convince enough people (early investors) that other people (LATE investors) will be willing to buy stock in the company based on meager sales figu
That's it? (Score:2)
Elon: Challenge accepted
wait.. an educational tech company in INDIA was.. (Score:2)
wait.. an educational tech company in INDIA was valued at $50 Billion dollars... INDIA... the place where it literally takes years to get anything done, and requires a bribe at every stage. Where you need to pay piles of cash to someone that knows someone, to arrange for a meeting.. and hope the person actually shows up... and then hope that they can assist at some point with some beurocratic roadblock that requires their stamp of approval. But you need to wait days to see them.. and no.. you don't make a
Probably was never worth anything... (Score:2)
"Valuations" are generally an expression of greed, stupidity and hope. They have no substance.