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.
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…
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.
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.”
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.
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.
