Back then, when they were the age 10gen/MongoDB is now, nobody valued those companies at (the appropriately adjusted equivalent of) 1.2 billion, because there was no clue they would be the winners.
All investors then were just overly cautious? Or perhaps there are now others ways to make money off of a company, not tied to the companies actual success and the value it adds to the economy?
> Back then, when they were the age 10gen/MongoDB is now, nobody valued those companies at (the appropriately adjusted equivalent of) 1.2 billion, because there was no clue they would be the winners.
Actually, MongoDB (formerly 10gen) is 6 years old. After 6 years, Salesforce's market cap was around $3 billion. (They IPO'd after 5 years.)
A market cap after n years is something different from a valuation derived from venture capital raised in prior years. Such a difference is precisely what makes for a good investment.
Salesforce revenue in the year of their IPO: $96M. IPO: $110M
> nobody valued those companies at (the appropriately adjusted equivalent of) 1.2 billion
One counterpoint. My friend worked at a university. This was back in the era of punch-cards. Oracle came in with their relational database sales pitch (they were basically a very small sales team). His manager (who managed the punch-carders) saw the huge potential that everyone else did not (e.g. 'never going to happen'). Bought Oracle stock right when it went public (mid-80s). Kept on buying it. Retired in her mid 40s. Now lives on her own farm, tending her own sheep (not sure if it was sheep or some other livestock), in the country.
All investors then were just overly cautious? Or perhaps there are now others ways to make money off of a company, not tied to the companies actual success and the value it adds to the economy?