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ANDRÉ CRAMER

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valuations

Great in-depth Read on Startup Financials: What Most People Don’t Understand About How Startup Companies are Valued (Mark Suster)

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization.

And two big changes have happened that are widely known – in the past quarter the value of some very high profile companies such as LinkedIn and Twitter have fallen substantially plus Fidelity (usually a public market investor) has written down the value of many of it’s later-stage private-company investments and made the downward valuations known…

Source: What Most People Don’t Understand About How Startup Companies are Valued | Bothsides of the Table

Tech Valuation Chart: Uber valuation vs market cap of publicly traded auto stocks – (Business Insider)

Source: Uber valuation vs market cap of publicly traded stocks – Business Insider Deutschland

Good analysis of the Situation of high-valuation Companies: Flipboard’s Fanfare Fades as Executives Exit, Sale Talks Stall (Bloomberg Business)

Flipboard Inc. debuted in 2010 with the kind of fanfare any startup would envy. The news-reading app piggybacked perfectly on the debut of Apple’s iPad tablet and Steve Jobs’s promise of a new era for digital media. Critics loved Flipboard’s magazine-like layout, created by one of the first software designers of the iPhone, and investors poured money into the company.

[…]

Other companies facing similar questions about whether they can make good on early investor expectations — and lofty private-market valuations — include online storage service Dropbox Inc., note-taking company Evernote Corp., music-streaming service Deezer SA and blood-testing company Theranos Inc., said Anand Sanwal, chief executive officer of CB Insights, a firm that tracks startup investing. The companies face a challenge in that they could be too expensive for another company to buy, yet may not have the business fundamentals to justify their valuations to public investors through an initial public offering, he said.

Read more on: Flipboard’s Fanfare Fades as Executives Exit, Sale Talks Stall – Bloomberg Business

Very insightful piece of reading: What did Billion Dollar Companies Look Like at the Series A? (Tod Francis on Medium)

Five key traits of unicorns at the Series A. Some may surprise you.

Source: What did Billion Dollar Companies Look Like at the Series A? — Personal Growth — Medium

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