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Feb 09
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LONG
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Ali Ghodsi
CEO, Databricks
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Databricks raised $7B despite being cash flow positive. There are "2000 vibes" (Dot-com bubble) in the market. If the bubble bursts, capital markets will freeze for 3-4 years. Having a massive cash pile allows a company to survive a wipeout and acquire distressed assets while competitors conduct layoffs. Startups with zero revenue are raising capital at multi-billion dollar valuations, a classic bubble signal. If the bull market continues uninterrupted, holding excessive cash drags on returns (opportunity cost). |
CNBC
Preparing for another tech wipeout: Databrick...
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