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How are the valuations calculated for companies that haven't raised a priced equity round in a long time? Specifically I'm thinking about companies like Zapier.
by andygcook 8y ago
How are the valuations calculated for companies that haven't raised a priced equity round in a long time? Specifically I'm thinking about companies like Zapier. They initially raised $1.3M in 2012 but haven't raised since and have funded off revenue. Is it based on private 409A valuations or some sort of formula on YC's end?
- deleted 8y ago[deleted]
- snowmaker 8y agoThey're based on fundraising or acquisition valuations, not 409A valuations. You're right that some of the companies have not raised money in a while, which in many cases means that their valuation would be higher if they were re-valued today.
- toomuchtodo 8y agoIs it a safe assumption that any company on the list who was in operation as of October 2015 with a valuation below $300 million at the time was accepted into YC Continuity?
- snowmaker 8y agoI think there's a misunderstanding of the way YC Continuity works. YC Continuity isn't a program like YC with an acceptance process.
- toomuchtodo 8y agoI appreciate the clarification. Apologies for my misunderstanding.