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0 pointsgorgoiler1y ago0 comments

There’s a bigger story to tell than just a number.

Is that $1.8B of revenue? Of profit? $1.8B of total funding in the last six months? In the last ten years?

Here’s $100M of funding for a 6% stake, four years ago:

https://siliconangle.com/2021/03/22/digital-identity-network...

Last year: a liquidity event for early investors and employees, none of which helps the ongoing business but instead lets the founders and C-suite buy a private island / holiday home / mobile home / home:

https://thepaypers.com/digital-identity-security-online-frau...

A $275M loan — not an investment, though you get a good deal if they default! — to keep them afloat?:

https://www.investing.com/news/stock-market-news/idme-secure...

The only rung deeper into the hype pit would be valuing them as a unicorn based on a too-big-to-fail government bailout.

0 comments

offtotheraces1y ago

Loans get issued based on profit generation (or asset value), so no, it is not “to keep them afloat”. You can’t get a loan if your company is not doing well or too risky (that’s why startups raise equity - because they are still too risky for someone to lend them money).

A loan is a form of debt, which is one of the two main forms of capital - the other main one being equity. Debt is less expensive than equity, so companies prefer to issue to raise capital via debt than equity.

throwawayqqq111y ago

Its not just profit that is considered for a loan. Anything related to states is more stable and thus less risky. Or how would you evaluate state bonds by profit only? Elon knows what i am talking about.

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