Well, before first revenues, it's a lot harder to determine the "type" of a firm, in the parlance of mechanism design theory. Are some firms being gipped by re

Well, before first revenues, it's a lot harder to determine the "type" of a firm, in the parlance of mechanism design theory. Are some firms being gipped by revenue multiples heuristic? Maybe: if VCs are reading revenues as a type revelation mechanism but they're still a noisy signal. Cue in stories about having one's first low grades in college.