
How WeWork spiraled from a $47B valuation to talk of bankruptcy - RandomWorker
https://www.businessinsider.com/weworks-nightmare-ipo
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tryitnow
This is why I'm skeptical of private weakly regulated markets and why I
actually support regulation of capital markets that forces disclosure. WeWork
was able to claim an absurd valuation in the public markets, but as soon as
they started filing the reports mandated by government regulation they started
imploding.

I think when government regulation mandates self-reporting and disclosure it
has a tendency to work (though not always), whereas when government regulation
takes punitive prohibitionist approaches it starts to stumble (again, not
always).

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chmod775
Valuation isn't money in the bank and - more often that not - does not reflect
actual company performance when talking about startups.

News at 11.

This obsession with IPOs and whatever clowns at wall-street seems to think
about certain companies is absolutely unreasonable.

If history taught us anything, wall-street is probably the last people you'd
want to ask for an opinion. No other sector needs infusions of public money on
the reg like they do. I have a suspicion I'll run out of toes to count the
number of bail-outs before I die.

We're asking _them_? Might as well flip a coin.

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pmart123
More importantly, once a company exits the product/business model fit phase,
it should have better understanding of how it can become self-reliant either
through having positive cash flow or a means to it. I would say the recent
events have shown why public markets offer transparency and scrutiny that
prevents crap being offloaded to smaller investors.

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WheelsAtLarge
I think all of this devaluation for unicorns is a plus for the capital
markets. What we are seeing is that VC's have overvalued companies simply
because they have fallen into a feedback loop that raises companies value just
because someone else invested at a certain valuation.

My suspicion is that VC's will start to evaluate companies at a more realistic
value and will force new companies to be more realistic about whether there's
value in the area they are trying to succeed in therefore giving strength to
the market for startups.

The downside is that it's going to get harder for startups to get financing.
But as always, if you have a good idea and have the perseverance to succeed
then you will.

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crb002
Hopefully they keep on truckin. Gobble up all the abandoned malls etc and flip
them for a tidy profit while keeping equity without the IPO dilution.

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bobthepanda
Given the siting of most abandoned malls (low density suburbia) and how large
they are, I don’t think they’re appropriate for WeWork.

