Abstract the past attention to eyeball economy, now pay attention to the real deal, according to Hamad’s estimation model, the valuation of start-up companies will be decided by the value of each engineer.
Beijing on April 8th news, according to foreign media reports, "New York Times" a long-term focus on the acquisition of startups dynamic editor published a blog post today on the website, elaborated his views on the current investment market.
below is the main content of the article:
in the acquisition of a start-up company, investors are how to calculate what the price should be reported?. In my opinion, it’s like investment institutions several executives discussed in the meeting room, each in the paper to write down his idea of numbers, put it in a hat, randomly selected by CEO, and then bought it is decided.
perhaps, this may sound some matter, but the investment market is flooded with all kinds of things not according to common sense, for example, some startups had no income, or no users, even their products are not, but there are big investors are willing to buy at high prices. So, I play this example above, it can be said that it is not exaggerated.
but we have to be objective, because some investors are more sensible. In the Internet bubble 1 era (around 2000), the market is still rational investors. At that time, the ability of investors to attract user attention to science and technology industry start-ups to value it, for example in April 1999, Broadcast.com was acquired by YAHOO for $5 billion 900 million per user may bring to the company’s revenue is estimated at $10000.
today, eyeball economy gradually decline, startups without income, how could people believe they can survive in the future? Of course, talk like valuation day dreaming! Investors also have their own small abacus when buying startups.
, for example, is the latest acquisition of a semi – acqui-hire, which is to buy a company for their employees.
PrivCo is a long-term concern for private enterprise investment institutions, its CEO Sam – Hamadeh (Sam), said the trend began a year ago, accounting for about 91% of the total number of acquisitions of. He said, if a technology company has no income, no user, then its valuation will be determined by the value of each engineer. Generally speaking, the value of each engineer is between $750 thousand and $1 million 500 thousand. Facebook knows the truth, a series of acquisitions last year will belong to this mode. And this greatly led the industry’s wind direction, because you can only buy the competitors as long as the money, thus occupying the market in one fell swoop."