Want to create a billion-dollar company? Just S$16 will do
A little experiment by some tech executives reminds us how pliant tech valuations can be
OVER the past four years, The Business Times’ Garage team has written about startups raising insane amounts of money to hit billion-dollar “unicorn” valuations. In a playful nod to this, my colleague Claudia Chong and I started our own faux fundraising drive for Garage.
We set up a DIY-ed donation box in between our desks, diligently collecting spare change from colleagues. To date, we’ve raised over S$10, mostly in 20-cent coins.
Can that measly amount grant us a startup-like valuation? Technically yes, with some aggressive financial engineering. If we gave our investors a 0.0001 per cent stake in our hypothetical company, we could declare ourselves worth S$10 million.
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