The big news: The website you’re currently reading is worth an NHL franchise. You’re probably skeptical that a dumpster working for less than two years can carry such a large price tag on a small employee co-op, but that’s just because you don’t wear smart pants. New York Times.
We read The New York TimesThere is, of course, and today a story about how the newsletter platform Substack is giving up trying to raise new money for its growth because “investors are promoting austerity and closing new contracts, especially for companies that have aggressively spent on growth with no signs of profit.” ” Sad!
As much as we felt sorry for Substack while reading this story, we couldn’t help but notice some more small tidbits of information contained in it. Here’s how, for example The Bar Describes substack discussions with potential investors:
Substack has been in talks with potential investors in recent months to raise $ 75 million to $ 100 million to finance its business growth, with people saying they would only speak anonymously because the discussion was private. The company is valued at $ 750 million to $ 1 billion in some fundraising talks, they said.
New York Times
And its 2021 earnings have been reported:
Substock investors say it had about $ 9 million in revenue in 2021, according to people familiar with the fundraising negotiations, which means the negotiations are worth a hefty premium compared to the company’s financial results.
New York Times
Really a hefty premium! And great news for us!
If a company with a relatively simple business plan – 1) builds newsletter platforms, 2) profits – it could be worth এক 1 billion in 2021 despite just pulling in 9 million in revenue, what could that mean for your friends at Defector ? Okay, we’ve made আয় 3.2 million in 2021, and so according to highly intelligent and logical calculations that have apparently made the substack worth এক 1 billion, the value of the defactor At least $ 333 million.
Maybe you’re thinking, Hmmm, are these the highly inflated appraisals that we’ve seen in the past promoted by media outlets like Vox and BuzzFeed, close to a true reflection of a company’s value or long-term performance? Or, Is it a hoax? Sounds like this kind of cheating? All we have to say is: we don’t make rules. This is the job market.
Anyway, congratulations to us.