A Startup Once Valued at $22 Billion is Now Worth Nothing (techcrunch.com)
- Reference: 0175277773
- News link: https://news.slashdot.org/story/24/10/18/153222/a-startup-once-valued-at-22-billion-is-now-worth-nothing
- Source link: https://techcrunch.com/2024/10/17/byjus-founder-says-his-edtech-startup-once-worth-22b-is-now-worth-zero/
> Byju Raveendran, the founder of the embattled edtech group Byju's, acknowledged on Thursday afternoon that he made mistakes, mistimed the market, overestimated growth potential and that his startup, once valued at $22 billion, is [1]now effectively worth "zero."
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> Speaking to a group of journalists, Raveendran said the company's aggressive acquisition of more than two dozen startups to expand into new markets proved fatal when financing dried up in 2022. Byju's was planning to go public in early 2022 with several investment bankers giving the firm valuation as high as $50 billion, TechCrunch reported earlier.
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> He alleged that many of his more than 100 investors had urged him to pursue aggressive expansion into as many as 40 markets. But, he added, those very investors got cold feet when global markets tumbled following Russia's invasion of Ukraine, sending the venture capital market into a downward spiral.
[1] https://techcrunch.com/2024/10/17/byjus-founder-says-his-edtech-startup-once-worth-22b-is-now-worth-zero/
Sure, sure (Score:2)
How many of those aquisitions were owned by friends?
Aquisitions are the perfect way to pilfer an overfunded startup.
Just normal capitalism (Score:1)
I've purchased a few stocks that just plain died over the years. It happens. Fortunately, I've had enough successful stocks to offset the duds.
Diversify Diversify Diversify.
Re: (Score:1)
yes I own couple dozen... I still know at least a third of those have value by the three fundamentals of hope, hype and hooey. It's the american way.
Richest man in the world for 7 minutes (Score:1)
This is the right place to post the [1]Max Fosh [youtube.com] video on this topic. These startups had real value, much of which has been destroyed bun in principle it's about the same. Stock valuation and accumulated wealth have only a passing acquaintance.
[1] https://www.youtube.com/watch?v=iHfJRON3b-w
Valuation is not value (Score:2)
> A Startup Once Valued at $22 Billion is Now Worth Nothing
Just like all the others, but this one's valuation now matches its true worth.
Re: (Score:2)
But I am sure the founders made out great, nice gig if you can pull it off :)
Nothing to lose (Score:2)
Raveendran said he remains hopeful that his startup will make a comeback. âoeI have nothing to lose. I came from a small village. I invested everything I had into the startup.â In other words, he only has investorâ(TM)s money to lose.
...but OFF a computer. (Score:2)
To say nothing of the dozens of startups valued in the hectobillions that are CURRENTLY worth nothing.
Re: (Score:2)
Or, rather: to say nothing of the dozens of startups CURRENT valued in the hectobillions that are worth nothing.
Re: (Score:2)
CURRENTLY. I hate this job. I will stop now. Sorry.
Re: (Score:2)
Why Stop?
You were on a roll, even though it is worth nothing.
:-)