2 ms·
I'm not so sure. I haven't seen the higher big ticket multiples scale down to smaller businesses very well (only in the small biz media negotiations I've been i
by petercooper 10y ago
I'm not so sure. I haven't seen the higher big ticket multiples scale down to smaller businesses very well (only in the small biz media negotiations I've been involved in or tipped off about - so I am no expert!). I'd certainly take a 16x revenue multiple any day of the week though :-D
- zazpowered 10y agoThey didn't buy the site really for the revenue so it's hard to go off of that when estimating acquisition price
- nugget 10y ago16x mature revenue, sure. But if revenue is growing 20% month over month, then what? I see pure talent acquisitions (no tech, no site, no brand) once a month for >$500k/head. Here the founder is a course 6 (CS) MIT grad, obviously smart and talented, able to act as an evangelist to broader communities, with a pre-built launchpad in place. There's real value to that. If the stock component vests over some period of years, it could easily run into the millions, and still be a steal by Stripe. I'll echo another comment downstream: it's interesting to think about whether, in the spirit of the site, they will (or should) reveal the economics of the deal.