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10 sats \ 9 replies \ @grayruby 11 Jan \ parent \ on: Orange Pill App: Stack Friends, Stack Equity! bitcoin

I am not a VC and I don't play one on the internet. I am just calling it like I see it. I don't think the company is worth anywhere near this. 7x revenue seems reasonable to me, which is around 2M.

Event ticketing will juice revenue but erode the margins so we will see how that goes. I do wish them well as I said I like the product and team.

60 sats \ 4 replies \ @orangepillapp 11 Jan

Hi Grayruby, Matteo here!

Thank you for your feedback and support—it’s greatly appreciated. For some context, we completed a pre-seed round last year at a $5M valuation, which was oversubscribed. Since then, we’ve more than doubled our metrics across the board, which is why we feel a $10M valuation is justified.

I’m curious, though—why do you believe event ticketing will compress margins?

Thanks again

10 sats \ 3 replies \ @grayruby 11 Jan

I don't know your financial statements and what arrangements you have with conferences/events for ticketing so of course I am speaking in generalities and assuming some things. Happy to be corrected but generally sub revenue for a software product would be a pretty high margin item and fees from event ticketing would be pretty low margin so if the lower margin item becomes a large mix of your sales your blended margin decreases. Revenue grows and potentially bottom line increases but margins compress.

Again, I know nothing of your situation and was basing this off generalities. You might be getting a 50% kick back from events on ticket sales. I have no idea.

Anyways, I wish you guys the best. Not trying to be a hater. If people will give you a 10M valuation then more power to you.

40 sats \ 2 replies \ @orangepillapp 11 Jan

Thanks for your reply—you’ve made some great points.

We don’t currently have any arrangements with conferences. We plan to take a 6.15% commission on every ticket sold via the app, and since payments will be exclusively in Bitcoin and we run our own payment infra, this revenue is essentially all profit.

Perhaps we should make this clearer in our pitch deck!

0 sats \ 1 reply \ @grayruby 11 Jan

6.15% seems pretty reasonable both for you and the buyer. Plus a good way to add to your bitcoin treasury.

40 sats \ 0 replies \ @orangepillapp 11 Jan

we could probably charge close to 10% but we like the number 6.15 😉

40 sats \ 3 replies \ @ThunderFunder OP 11 Jan

I appreciate your input. Event ticketing is exciting but for some reason I'm more excited about the upcoming LN wallet integration.

It's worth noting that OPA has almost 4 BTC in their treasury reserves, which if you're bullish about the trajectory of the bitcoin price over the next decade, should factor substantially into the valuation calculation.

0 sats \ 2 replies \ @grayruby 11 Jan

I am bullish the Bitcoin price over the next decade but if I think the operating business is worth 2M then I am paying 8M for 4BTC when I can buy 4BTC in the open market for lets say 400k to make it easy.

I do think it is a good point that holding the Bitcoin and growing that treasury does de-risk the valuation a bit because if one believes the company can stack more Bitcoin over the next decade and those Bitcoin could potentially be worth 10M on their own.

I don't think that is the main reason to invest in a company but it is a nice little insurance policy if you are bullish bitcoin.

40 sats \ 1 reply \ @ThunderFunder OP 11 Jan

I don't think that is the main reason to invest in a company

I fully agree... unless that company is MSTR apparently, haha.

Thank you for sharing your thoughts!

0 sats \ 0 replies \ @grayruby 11 Jan

Apparently. Their premium to NAV seems to be coming back down to earth a bit. I don't know what people were thinking. Buying paper proxies of Bitcoin at 3x the actual Bitcoin.