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All posts tagged "valuations"

  • How do startup valuations work?

    Putting a price tag on a young startup is a peculiar practice. While valuation models exist, many agree that it's more of an art than a science, especially in the absence of revenue -- if you've ever wondered how Instagram reached a billion dollar valuation without literally ever having made a cent, you're not alone. When a company is producing a profit or revenue, valuations can be based on thumb-suck math like five to ten times annual profit, or three to four times revenue. Great, but what if you were a VC in the early days of Twitter, Facebook, Pinterest,...

  • So. Many. Billion-dollar startups. [Infographic]

    When we came across this infographic about billion startups by Staff.com, we were impressed to see the number of young companies that have sky-high valuations. That is, until we started calling out big names that we expected to see on the list. Where is Pinterest? What about SurveyMonkey, Rovio and Kayak? Once we started doing some research we realised that the billion-dollar club has in fact become more of a party in the park than an exclusive VIP snootfest. The New York Times did the thumbsuck-math and came up with a number between 25 and 40 startups that now have...