In whichthe time can it at could least take take a 6-12 company months,to get rival that companies much-awaited are bumpout therein total focusing valuation, and executing on expanding their business, of course, with the capital to carry out the same. A company, meanwhile, spends countless of hours while fulfilling data requests and attending meetings with potential investors. Companies seeking for funds are starving of cash that they require for growth, especially at the juncture in the timespan, which is most critical to the growth. Well, so much of fishing is not a great outcome.
So how does this actually work? Time and again, we’ve heard about some or the other companies being valued at whopping billions of dollars, but let us also not forget that hardly a few of these companies actually manage to survive the intense competition in the global market. While some end up getting acquiesced, there are others who wipe-off their entire existence from the planet.
Prominent tech Unicorns like Uber and Didi Chuxing, are valued at more than a billion dollars. But, does this actually matter? How is one supposed to measure a company’s true value? Is it correct to allow “Valuation” to be the ultimate tie-breaker? Does this valuation actually guarantee the success of the valued company in future? Lower valuation, on the other hand, probably can become a success triggering factor considering it offers a quick capital infusion.
May be, it’s the risk that matters the most. Uber, for instance, dominates the global ride-sharing market despite being enveloped by endless lawsuits and controversies. How? Risk, is the answer.
Editor-in-chief, Industry Leaders Magazine