Alex Wilhelm@alex /
sad paper unicorn

Happy Sunday to all startup nerds.

Risk is the gambling sense of the word. A lot of the world's billion-dollar startups are taking the wager that there is a way to avoid painful dilution when they next raise capital. New data shows that the bet some of the most well-financed startups in the world are taking is more likely to be wishful thinking than smart.

Many of the companies that raised capital during the boom at valuations that are no longer square with market standards are holding off on raising capital until the situation improves. They are betting that they can survive off their last cash haul long enough to make it through a valuation trough and raise when prices improve.

In order to understand what is going on, we need to talk about the state of valuations and revenue multiples. This is going to be a big deal.

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