I don’t think this is super important, but when it comes to things like FTX I think it’s also worth keeping in mind that besides the crypto volatility and stuff there’s also the fact that a lot of what we’re marking EA funding to aren’t publicly-traded assets, and so numbers should probably be taken with an even bigger pinch of salt than usual.
For example, the numbers for FTX here are presumably backed out of the implied valuation from its last equity raise, but AFAIK this was at the end of January this year. Since then Coinbase (probably the best publicly traded comparator) stock has fallen ~62% in value, whereas FTX’s nominal valuation hasn’t changed in the interim since there hasn’t been a capital raise. But presumably, were FTX to raise money today the implied valuation would reflect a somewhat similar move
Not a huge point, and in any case these kinds of numbers are always very rough proxies anyway since things aren’t liquid, but I think maybe worth keeping in mind when doing BOTECs for EA funding
Thanks for writing this, really great post.
I don’t think this is super important, but when it comes to things like FTX I think it’s also worth keeping in mind that besides the crypto volatility and stuff there’s also the fact that a lot of what we’re marking EA funding to aren’t publicly-traded assets, and so numbers should probably be taken with an even bigger pinch of salt than usual.
For example, the numbers for FTX here are presumably backed out of the implied valuation from its last equity raise, but AFAIK this was at the end of January this year. Since then Coinbase (probably the best publicly traded comparator) stock has fallen ~62% in value, whereas FTX’s nominal valuation hasn’t changed in the interim since there hasn’t been a capital raise. But presumably, were FTX to raise money today the implied valuation would reflect a somewhat similar move
Not a huge point, and in any case these kinds of numbers are always very rough proxies anyway since things aren’t liquid, but I think maybe worth keeping in mind when doing BOTECs for EA funding
This comment has aged very well!