Secret's Out, Tech Valuations Might Not Be Totally Realistic

Numbers are fun. Crazy numbers are even funner.
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Remember Secret, the Twitter/Facebook mashup for those who preferred to say hateful things behind a veil of anonymity?

In July, the Wall Street Journal had this to say about the startup that everyone was talking about (but not using their own names, that would have been social suicide)...

Anonymous-messaging app provider Secret is likely among the fastest of any startup to reach a nine-figure valuation.
Founded just nine months ago in San Francisco, Secret said it has raised $25 million from a group of investors led by Index Ventures, co-founder Chrys Bader-Wechseler said in an interview. A person familiar with the matter said investors now value the company at $100 million. Redpoint Ventures, SV Angel, Fuel Capital and Ceyuan Ventures also participated in the Series B round of financing.

To sum it up, Secret was a nine-month-old startup with $35 million in funding and a nine figure valuation.

It had no revenue and no discernible business plan, but it was soooooo hot, you guys. So. Hot.

Fast forward to Wednesday...

Anonymous messaging startup Secret is shutting down, according to a blog post from CEO David Byttow.
Byttow alerted employees this week that Secret, which allowed people to share anonymous posts to friends or people nearby, would be closing up shop. He has also decided to return to Secret’s investors what remains of the $35 million in venture capital he took.

So... Hot?

So Secret is no more, meaning a major moment in speculation is over and we've all just learned an important lesson.

Infinidat Inc., a secretive young data storage company, has burst into public view with $150 million in new funding and a valuation of $1.2 billion, placing it among the most valuable privately held companies in the world.

Nevermind.

Anonymous Messaging Startup Secret Is Shutting Down [re /code]

Data Storage Startup Infinidat Raises $150 Million at $1.2 Billion Valuation [WSJ]

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