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My napkin math is your valuation is usually 5 x raise amount and 10x annual revenue. So valuation is 5*60m = 300m And expected annual revenue is 30m. At 40/mo
by flashgordon 2y ago
My napkin math is your valuation is usually 5 x raise amount and 10x annual revenue.
So valuation is 5*60m = 300m
And expected annual revenue is 30m.
At 40/month they are expecting roughly 1M monthly actives. So I am guessing their pitch is with the vc money they will get to this number and beyond before the next funding round.
Reality is more like the founders got to cash "something" for their troubles and ability to sell the dream to others. Who knows may be they will hit it out of the park before the next round.
- deisteve 2y agointeresting...and if you have this type of revenue who do you approach
- chrisabrams 2y agoIf you have this kind of revenue, you don't approach anyone, they approach you.
- ericjmorey 2y agoThe linked post said they got funding from Andreessen Horowitz, Thrive Capital, OpenAI, Jeff Dean, Noam Brown, and the founders of Stripe, Github, Ramp, Perplexity, and OpenAI But there are many others like Accel and Caffeinated Capital
- flashgordon 2y agoSo the funding is usually for a "future" revenue. Ie to hit this goal. Imo if they had this revenue they'd be aiming for 10x that with a much higher valuation. VC funding is all about a growth story. If you can keep selling vision you never have to worry about revenues or hitting them. There's even a name for such schemes!
- deisteve 2y agowhat happens to the founders if they dont hit it
- flashgordon 2y agoThey either run out funding (so be forced to do layoffs, liquidations etc) or they have to find someone who can bail them out at unfavorable terms (read dilutions) or be really really good at story telling.