Re:Troubles Mount for the We Company as Softbank Reportedly ...
by wastedhours on Tuesday September 10, 2019 @08:20AM
(#20927368)
> I'd love to know how throwing good money after bad would shore up the faith in the rest of the portfolio?
I mean, I'm just throwing something out there - I can't see how they were funded in the first place...
But, there's definitely a scenario where We taking a 50% haircut after several large-scale late rounds led by one prominent fund could lead to other companies valued at a level by the same late stage fund being valued less. The optics of that to other investors, whilst common for a lot of funds, at this late stage could raise some eyebrows.
$3bn to maintain We's valuation on the private market might mitigate against several multi-$bn write downs across the portfolio, especially if they're planning IPOs as well.
No idea if it's a decent strategy, but this is VC we're talking about...
I mean, I'm just throwing something out there - I can't see how they were funded in the first place...
But, there's definitely a scenario where We taking a 50% haircut after several large-scale late rounds led by one prominent fund could lead to other companies valued at a level by the same late stage fund being valued less. The optics of that to other investors, whilst common for a lot of funds, at this late stage could raise some eyebrows.
$3bn to maintain We's valuation on the private market might mitigate against several multi-$bn write downs across the portfolio, especially if they're planning IPOs as well.
No idea if it's a decent strategy, but this is VC we're talking about...