Chief raised $100m Series B funding earlier this year and is now valued at $1.1b.
What I find interesting is that according to this job description, they have either 12k or 17k members. That’s not a lot of members for $100m raise or $1b value
Of course, these are likely high value members and I’d sure love to know what their actual revenue looks like, how much they charge, and what different streams they may have.
I log it here because I do wonder if this will one day become another overvalued community company or if it will live up to the valuation expectations.
[Screenshot of their current offering]
I imagine they charge between $5k-$10k per year.
Conservatively, if it’s $5k per year with 15k members that’s $75m in annual revenue, which would make the raise and the valuation reasonable.
I’d bet they’re creating supplemental revenue streams as well. Recruiting seems like an obvious one.
Have you tried applying to become a member? Apparently they make it super exclusive.
Maybe I’ll give it a shot, even if it is just to get rejected
Is $75m revenue (which doesn’t mean it’s profitable) enough for a $1b valuation?
Perhaps in unicorn world, but it’s far off the 3-5x expected from businesses/startups in general.
My co-founder got rejected, but hey at least unlike Harvard, it’s free to apply…
I’m surprised they’re valued at that too, in the “current market conditions”. Before this year I thought “maybe other investors are smarter than me” but then I look at Bird scooters or WeWork and I think it’s all a grift.
Would be cool if they opened up to more “normal” members instead. Oh… what about founding a competitor Chief but to women with founder / builder / startup / bootstrap experience, but aren’t millionaires? You’d be excellent at that, Rosie…
I do have Indiependent.land on the go. I do want to build more of a community around that. I get so sucked into Rosieland though
Oh wait, sorry I forgot you had that! Maybe you have to make it more exclusive to warrant a $1bn valuation!?
It looks like the deal was valued in Q1 of 2022 from Chief surges to unicorn status This was the end of the bubble valuation levels so they are likely facing a down round unless they hit it out of the park.
I think the valuation may be driven by the budgets that the leaders control, joining the community would give brands / sellers access to those budgets.
I gave a briefing in February on startup valuations Startups: What’s Hot, What’s Not Feb-22-2022 - SKMurphy, Inc. I speculated we were near the top and by May 2022 it was clear the valuations had collapsed.
May 2022 postscript: what a difference 3 months makes; startup world is now in a recession
Ycombinator sounded the klaxon in May-19-2022: YC Advises Founders to Plan for the Worst. My key take-away was #6 on their list: “For those of you who have started your company within the last 5 years, question what you believe to be the normal fundraising environment. Your fundraising experience was most likely not normal and future fundraises will be much more difficult.”
- Default Alive or Default Dead?
- Save Your Startup During an Economic Downturn - YouTube
David Sacks / Craft Ventures: Operating during a downturn
Craft Ventures: Operating during a downturn - YouTube key points:
- Best scenario is to not have to raise capital right now. This condition may last for another 12-15 months.
- Slower growth at a 24-30 month or longer runway is much better than high growth on a one year runway. Break-even cash flow is a good target if you can hit it.
- Cut any sales / marketing spend that does not have an immediate (less than 3 months) payoff.
- Except for raising money most things get easier: for example less competition for good candidates and ads become much cheaper.
For context here is the “Sequoia memo” from 2008
Here’s a post on Chief I came across today.
Which also answers the question of price.
It’s not cheap either, with annual membership rates ranging from £5800 to £7900 per annum, or about 2X Soho House global membership. Sure, many members will get their companies to pay for them, but committing to this kind of spend on yourself ensures that you’re going to take it seriously.