How to value tech companies with no revenues
How to value tech companies with no revenues
Rick Baker, the Co-Founder of Australian Venture Capital firm Blackbird says that investors have got to seek out genuine product-market-fit when trying to value technology companies with no revenues. “Number of users and growth is obviously really important and then it keeps coming back to engagement. We really look hard under the hood at how people are using (the technology). Before you have a product that people really love it’s crazy to spend time, money and effort trying to grow because you’re growing something that people don’t like.”
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What are the other matrics he talked about apart from revenue?
Soooo there was no equation; just personal opinion. OK.
Thanks, the explanation was helpful
This article is also comprehensive on a variety of valuation methods
“Concepts and Methods of Startup Valuation”
Valuation or determining the value of a company’s stock is one of the most challenging issues that most investors and startup founders face in the process of fund raising is. In the following article, we intend to examine this concept and elaborate on the appropriate and common methods of startup valuation.
https://retiba.com/academy/fundraising-analysis/startup-valuation/
Table of Contents
• What is the purpose of startup valuation?
• What kind of value is calculated in startup valuation process?
• What are the different methods of startup valuation?
• Startup Valuation by Risk Factor Summation Method
• Relative and market-based methods of startup valuation
• Valuation methods based on financial data
• How to choose the right method for business valuation?
Sounds like they are shooting in the dark.
I have major concerns about the value placed on certain tech companies.When they generate income through advertising I feel like customers are seriously misled. Especially when they are using bots.