$ per employee varies quite a bit on industry, the type of employees, insourcing/outsourcing decisions, stage of company, etc. $500K per person assumes massive

$ per employee varies quite a bit on industry, the type of employees, insourcing/outsourcing decisions, stage of company, etc. $500K per person assumes massive profitability. As recently as January 2015 they needed $40mm to help pay the bills. I think it's more reasonable to assume they are near cashflow neutral. Perhaps $150K per person is more reasonable? That would imply $45 million in revenue. Seems reasonable, but perhaps slightly high. Then there's a question of what multiple should be attached to their valuation. That would be driven by growth, margins and customer retention. Since their revenue model is similar to LinkedIn, perhaps their 8X multiple would be correct? That would put the value at $360mm. Given the wide variety of built in assumptions, I'd put it anywhere from $180mm to $540mm. One other way to get at their valuation... How much would their investors have demanded for their $40mm investment? If it's 20%, then you'd have a $240mm post-money valuation in 2015. Are things going better or worse than their investors would have planned for? I'm not qualified to make this judgement, but if you assume it's the same, then we're at the lower end of the $180mm to $540mm range. Net - I don't agree with your math, but your conclusions are sound. :-)