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Oh boy, if his 100MM/year in revenue business is only worth 50 million, most startups are _really_ in trouble.
by mydriasis 3y ago
Oh boy, if his 100MM/year in revenue business is only worth 50 million, most startups are _really_ in trouble.
- AceJohnny2 3y agoWhy yes, company valuation is uncorrelated from revenue. By the way, this is why VCs love software startups, and drive so hard for an IPO exit.
- cscurmudgeon 3y agoLook up revenue multipliers: https://www.bizbuysell.com/learning-center/industry-valuation-multiples/ https://www.bizbuysell.com/learning-center/industry-valuatio...
- c0pium 3y agoThat’s pretty clearly what they’re talking about, yes.
- cscurmudgeon 3y agoNot really. They and others here seem clueless about multipliers less than 1.
- c0pium 3y agoThey described a fractional multiplier. That’s their whole point.
- cscurmudgeon 3y agoThey were posting in disbelief. You should read their comment again.
- c0pium 3y agoThat is obviously incorrect, is English not your first language?
- missedthecue 3y agoMost startups are growing faster than a literal grain mill, and they have good unit economics. Another customer costs little for a software company. Another customer can cost a lot for a grain mill. These contribute to valuation.