LivingSocial almost Bankrupt and Pinterest Worth $2.5 Billion

Some things never cease to surprise me. Particularly when I see that one company which raised money a while ago is on the out, potentially. Their new funding, if you can call it that, destroys employee’s stock and founders stock. While another company raises a valuation that blows me away, particularly while I could not find any information regarding revenue. How quickly investors forget.

Just a few of the ramifications according to the article that LivingSocial is almost Bankrupt
living social bankrupt
Ramifications of LivingSocial’s Acceptance of The Oppressive Terms of Emergency Funding:

  • 4,000 employees’ stock is rendered worthless
  • Employees’ stock options are worthless
  • Founder stock is worthless
  • Emergency funding terms means LivingSocial handed over the company to today’s funders
  • Nearly a billion dollars of investor money has been lost, as all early rounds (Series A, B etc.) are worthless
  • … the list goes on and on

Pinterest Raises $200 Million on a $2.5 Billion Valuation
pinterest valuation
“A lot of last year was keeping up with growth [and] the big change with touch-screen devices,” said Mr. Silbermann, 30 years old. This year, “we’re building foundations to monetize.” quoted from the Wall Street Journal