4 ms·
It's an oversimplified example to illustrate how revenue-multiple valuations lead to perverse but rational investment strategies.
by datalopers 4y ago
It's an oversimplified example to illustrate how revenue-multiple valuations lead to perverse but rational investment strategies.
- paxys 4y agoIf you plug in realistic numbers in that example you will see that yes, while network effects from your VC's portfolio is definitely a thing, it isn't some crazy scam that is due to collapse. The most a VC can do is get you 5-10 early customers and try to generate some word of mouth buzz.