Re:OpenAI Completes Deal That Values Company at $157B
by tqi on Wednesday October 02, 2024 @01:44PM
(#41723143)
I think later rounds generally have lower return expectations - if you assume the stock market will return ~10%/year, you probably only need it to 2X by IPO time (depending on how long that takes) for your overall fund's IRR to beat the stock market.
[ Parent
| on HN ]
Re:OpenAI Completes Deal That Values Company at $157B
by mattmaroon on Wednesday October 02, 2024 @04:59PM
(#41724920)
You would if it were the fund’s only investment. But it won’t be. And this is still not a mature company, as their expenses currently vastly outnumber revenue, so there’s always a chance of failure.
Your general sense that the later stage higher dollar figure raises look for a lower multiple than the earlier ones is correct, but they’d consider 2x a dud.