If I am willing to pay $10 million for the store, the value of that business is $10 million to me. First I ask myself: How much am I willing to pay for this business? The answer to this question can be the value of that business. Let’s say I am considering buying an Amazon online retail business. If the car stays idle in the garage with no one driving it, the value is essentially zero. In this particular case the value of my car can be represented by 2 hours/100 miles. With my car, I can commute 100-mile distance in, let's say, two hours. If the coffee sits on the table without anyone drinking it, the value of that coffee will be zero. In this case, the value of the coffee can be represented by 5 tasks/day or 1 hour/task. When I drink a cup of regular coffee (not decaf), I can finish 5 tasks on average instead of two in a day or I can finish a task on average in 1 hour instead of 2 hours. If it stays idle without doing anything, the value is essentially zero. My current understanding is that, in general, the value of something can be represented/quantifiable by the units of some other things that can be directly obtained by putting that thing into usage. But this argument feels like trying to argue the value of 10 meals rather than the value of $100. One can argue that when 10 meals can be purchased using $100, the value of that 10 meals can be hugely different for different people in the different parts of the world. On the other hand, the exact answer to the question of “what IS the value of $100 fiat money” is not yet obvious (at least to me). Intuitively, the value of a fiat money can be represented by the units of consumables one can purchase using that money. For instance, if the coffee shop, or the restaurant, or the hotel or any business in general refuses to accept fiat money, the value of that $100 will be zero. If I can’t put this $100 into any usage, it is worthless. Accordingly it feels like the value of $100 should be ~50 cups of coffee, or ~10 meals, or a one-night stay at a hotel. Capital Ventures, and numerous individual investors, the most notable being Elad Gil, ex-vice president of Twitter.When I have $100 to spend, I can buy ~50 cups of coffee, ~10 regular meals, or a 1-night stay at a hotel, etc. The startup is backed by investment firms such as Sequoia Capital, A. Headquartered in San Francisco, Notion has over 40 employees. It is notable that Cannon also led the funding round raised by Quill, a potential competitor of Notion. In my view, Notion is both of those.” Cannon had been pestering the executives of Notion for the past 18 months to accept the investment. Index Ventures partner Sarah Cannon revealed, “In times of economic uncertainty you only want to invest in best-in-class and generation-defining companies. Kothari referred to the new funds as “a signal of stability.” The startup plans to grasp the opportunity and expand its customer base through additional funds. The work from the home situation has led to an increase in the users of their apps. However, the recent pandemic COVID - 19 has made the executives to reassess their decision. He further added that the operations of the company had never been constrained by money. The founders believe that the company’s apps would replace Microsoft office suite.Īkshay Kothari, CEO of Notion, has earlier stated, “We’ve had opportunities to raise a lot more, but we’ve never felt like if we had more money we could grow faster,” expressing the company’s disinterest in raising new capital. It considers itself as the competitor of Microsoft. The startup offers its services on a subscription-based model. It offers highly customizable apps such as note-taking, tasks, wikis, and databases aimed at increasing the productivity. The funding came as a surprise to many as Notion executives were had declined investments from major investors in the past.įounded in 2016, the company provides an all-in-one online workspace to enterprise customers. Prior to this, the company had only raised $10 million at a valuation of $800 million. The funding has increased the company’s valuation to $2 million and allowed it to gain the unicorn rank now. The workspace productivity platform recently announced that it has raised $50 million in its latest funding round led by Index Ventures.
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