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Category: Valuation

Rise of the $3.4 Billion Taxi Service, and Other Valuation Tales

September 5, 2013 by Shyam Jha


Valuation of Uber Taxi Startup

The $3.4 billion uber-valuation that Uber – the on-call taxi and limo service – received recently in its latest round of financing has eyes popping and tongues wagging. Uber is expected to reach revenue of $125 million in 2013, implying a valuation of almost 30 times revenue. A number of other taxi-hailing startups such as Lyft and Hailo are also revving their engines to get into the highly regulated livery service business. Economists tell us that valuation bubbles happen periodically. The Internet Era has shortened the time between the occurrences [Read More]

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How Can My Partner and I Value Our Company?

October 22, 2012 by Jimmy Lewin


Four business valuation models explained

In a recent post, Breaking Up Is Hard To Do, we talked about the problems that arise when owners of a small business don’t plan for the eventual change of ownership that always happens. In that article, we discussed the two owners of an 8-year old successful business.  The owners were unable to agree on the value of the business when one of the owners wanted to buy out the other. We talked about the need for partner-owners to create a buy-sell agreement early in the life of the business [Read More]

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Startup Valuation Is Not a Science But is Predictable

January 23, 2012 by Marty Zwilling


Money Scale

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number. I’ve written about this before, but it’s a mysterious subject, and I’m always learning more. This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Two founders have [Read More]

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Do You Have a Venture Value Scorecard?

June 22, 2009 by Akira Hirai


Do You Have a Venture Value Scorecard

We can measure success in many ways. In business, one important measure is the value of the company. That’s because a company’s value is a composite of all of the quantitative and qualitative factors that comprise a company: revenues, expenses, risks, growth prospects, quality of the management team, competitive advantages, strength of the intellectual property, and so forth. In general, we want to do the things that increase the value of the business, and we want to avoid doing the things that reduce it. The problem is that we often [Read More]

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What’s Your Company Worth?

February 18, 2009 by Jimmy Lewin


What’s Your Company Worth?

Valuing a business is always an imprecise science, even with large-cap public companies. For example – Is the true value of a large public company based on its market price? It’s book value? It’s potential worth if broken into parts that have more perceived value than the whole? The answer is that there are many ways to determine the value of a company. Perhaps the best way to understand the “value” of any business, large or small, is to look at who’s doing the valuing and for what purpose. For [Read More]

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