There's a variety of reasons why you'll see M&A prices that are several multiples of a startups revenue. In financial terms, its a long term investment just lik

There's a variety of reasons why you'll see M&A prices that are several multiples of a startups revenue. In financial terms, its a long term investment just like any other. Figuring in the net present value of money, the selling price must consider the asset's future value. Everything such as good will, userbase, and talent that comes along with the startup are simply indicators that the asset's value will grow with time.