Gurley criticizes Silicon Valley's crude valuation approach, where entrepreneurs expect 10x revenue regardless of business model quality.
“I've always felt Silicon Valley has a very crude understanding of valuation. Most entrepreneurs think they all deserve 10 times revenue and also with zero regard for what the revenue is.”
Gurley says Silicon Valley rushes to price-to-revenue multiples because it's the crudest, least intelligent valuation method.
“I've always said that Silicon Valley has the crudest kind of least intelligent view of valuation. They always rush to price to revenue because it's easy and because quite frankly, it's easier to be optimistic.”
Gurley criticizes Dario for being both top cheerleader and doomer while raising billions and cashing out employee shares.
“Dario, the guy leading a company that's raising billions of dollars and cashing out billions in secondary to his employees is simultaneously the top cheerleader and the top doomer.”