startup valuation Quotes

Every time a twenty-something CEO turns down a multibillion-dollar offer for a company that has little or no revenues, it hits a raw nerve in me. Unlike most professionals, I am not shocked by the seemingly bizarre behavior of those founders who pursue their vision beyond all rational thought or monetary reward.

Valuations are actually quite simple to grasp. A company is only worth what two acquirers are willing to pay for it. Don't you just need to find that one buyer? If there is only one potential company interested in buying your startup, chances are you won't be hearing the word 'billion' in the offer.

I think we have a bubble in the US in government bonds, because of the quantitative easing and the negative real interest rates, and to some extent, that increases asset values across the board, including in startups.

In the early days of a startup, people's compensation is whatever you negotiate with a founder and it's all over the place.

Nothing turns off an investor more than when an entrepreneur comes in with a ridiculous valuation.

VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.

In a start-up society, huge sums can fall on innocent parties, almost by accident .

Something like Pinterest would scare the hell out of me. With $5 billion valuation - regardless how sound those numbers are - wouldn't be one that I would start, given what I would consider the risk of failure.

When valuing a startup, add $500k for every engineer, and subtract $250k for every MBA.

We are seeing a lot of cases where the startups are writing the term sheet, dictating the terms, selling common stock instead of preferred stock, where they don't give the investor veto rights or board seat or privileges, and they are really asking the investor -- why should I take your money when there is other money available.

In an era of endless innovation and constant disruption, what is any company really worth? How does a startup determine its valuation?