Netflix Falls 70% in Six Months: Why Should Startups Insist on Peak Valuations?

Robin: ‘Secondary markets still react very quickly to company value. Netflix, the global streaming giant, spends US$18 billion a year on film and television production. Reed Hastings is such a visionary founder: he seized his era’s opportunity to knock down former distribution giant Blockbuster and create a whole new streaming industry, thoroughly disrupting the global cable television ecosystem. Netflix also has a distinctive culture and has published several books influencing Silicon Valley organizations and cultures. Even a company as legendary as Netflix can lose 70% of its market value in six months. Why, then, can private-market startups insist on the same valuation as last year’s peak—or even higher?’ Robin: ‘Global inflation is leading to monetary tightening and interest-rate increases. In the near term, fundraising can be expected to be harder than in the second half of 2021. If you need to keep moving forward, you must deliver tangible results and compelling reasons for investors to support you at this stage.’