We pulled registered investment advisor data and mashed it up with CB Insights data to deliver this pretty epic comparison of two of the most well-known robo-advisors to see who is winning.
The $400M failure?
When Trello sold for $400M, a blog post highlighted why they failed to build a $1B business (see The Blurb).
Jon Westenberg penned an amazing post (also see The Blurb) discussing the absolute absurdity of this premise and our current collective b0ner for unicorns and billion dollar valuations.
Read Jon’s post. It’s great.
Here’s an excerpt.
Mark Suster, a VC, offered a similar critique (also see The Blurb).
Yes – in our altered reality right now, we have defined startup success according to two things:
How much you’ve raised. For example, there is a SaaS company that has raised almost $200M, is valued on paper at $600M, is burning gobs of money and is doing $50M in ARR. This company is a “hot company” in startup land that folks talk up regularly despite dumpster fire fundamentals. And yet, Trello could have done better after exiting for $400M after only raising $10M.
What’s good for the financiers. Success is often talked about in the media by whether the company is a 10-bagger (an investment that has appreciated 10x from initial investment) or whether it returned the whole fund? Or did it hit the arbitrary $1B valuation mark? If it does any of those, success. If not, well…that’s ok. Nice “lifestyle business” you have there or why didn’t you build a billion dollar company.
Oddly, success is often framed relative to what is good for the financiers – not the startup employees, founders, customers, etc.
The “venture industrial complex” as Devin Matthews of ParkerGale Capital has described it is incredibly strong. (see The Blurb as well for his article).