Thanks to my friend for sending me this link!
You have probably heard about “unicorns”. They are startups that race up to pre IPO billion dollar valuations. Fred Wilson posted the other day that focusing on valuations this way is not a great idea. He was a bit more direct
I hate the word unicorn. It’s using fantasy to describe something very much reality. But I don’t want to digress from the larger point I’m making to go down the unicorn rat hole. Just please don’t use that word around me. I will likely throw up and that won’t be pleasant.
Heidi Roizen lays out a fictional scenario that gets into how this all can go very wrong. You may not be in the VC business. And you may not be nurturing dreams of becoming a unicorn. But if you are building value and have hopes to scale, it is worth spending a few minutes to get straight how to measure tha success.