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You assume those deals scale down. Just because a company will pay $50 million for 50 engineers doesn't mean it's going to pay $1 million for 1 engineer. 50 eng

• cpncrunch 11y ago
  Generally most startups have one or two "star" employees, who actually created the startup. I would say that the single engineer in a one-man startup is worth a lot more than the average engineer in a 50-engineer startup. Instagram had 13 employees and was acquired for $1BN. Ptch had 3 employees and was purchased for $6.5M. In those cases the technology and product took up most of that value. If the acquirer is actually going to use your technology, that will obviously be a large factor in determining the sale price.