5 Comments

Great writeup!

Shifting from $B valuation to $B revenues is a step in the right direction. This thinking has to and will change given current economic conditions.

Taking it further, it would be more helpful if we can move to free cash flow or margins (even more indicative of a healthy business) and have a way to characterize this group.

Expand full comment

thanks for the feedback Raghu.

perhaps looking at gross profit is a better comparison than revenue (but unfortunately even harder to get private companies to reveal).

Expand full comment

Great post, Nikhil! As a corollary, I think Goodhart's Law is a great way to frame the misguided approach to unicorn fetishisation over the past decade (i.e. “when a measure becomes a target, it ceases to be a good measure.”).

Expand full comment

Rahul, spot on with Goodhart's Law, thanks for sharing.

Expand full comment

CHIME CHIME CHIME

Expand full comment