This doesn’t ring true to me. It’s only valued at that level by the people who participated in the transaction. There’s no such thing as a “true” valuation. Each valuation is tied to a specific transaction. The more transactions the better since that means more people seem to agree on the valuation.
I understand this piece is meant as a joke, , but it rubbed me the wrong way since the first sentence, which the whole piece is built upon is just plain wrong.
It’s unnecessary to spread myths about how venture investing work and how valuations are set. Surely, there are many ways to make fun of the venture world without spreading false information.