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As an IPO this sounds similar to most biotech/pharma startups. These companies routinely IPO in the $50-100 million range when all they have is a patent, some promising data but no approved clinical trials and no business.

Of course it's different because there's a clear post-IPO acquisition market for biotechs. Not quite as clear who would buy Hyperloop if it's proven to work...




It seems to be related to how startups are suddenly valuated at billions without much of a moat or intrinsic value. Just for having "users".


Meh. If I give you $100 for a 1*10^-6% stake in your company with a guarantee that you will pay me back at least $100 before honoring any other debts or issue, are you really a ten billion dollar startup?


It's most entertaining to subtract any preference off the top of the valuation. I wish it became a trend. Particularly for preferences with multipliers!




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