The New Mathematics of Startup ValuationClassics
September 5, 2017
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Valuing a company is always a mix of science and art, especially for startups. Historically the science has been pretty simple: Find comparable companies and do a multiple of earnings or revenue. However, three drivers of startup valuation have emerged that are changing the game. “Acquihire,” is the act of buying out a company for the skills and expertise of its staff. When Facebook buys a company like Hot Potato, it’s not for the revenue stream or products — it’s for the employees. Companies…