Yep, revenue multiples are a heuristic for expectations of future growth, which is what I care about
This is true, but I’m not aware of any investments on $0 revenue at the $10B scale. Would love to hear of counterexamples if you know of any![1]
Instagram is the closest I can think of, but that was ~20x smaller and an acquisition, not an investment
Anthropic reportedly got a $4B valuation on negligible revenue. Cohere is reportedly asking for a $6B valuation on maybe a few $M in revenue.
AI startups are getting pretty absurd valuations based on I’m not sure what, but I don’t think it’s ARR.
Thanks! I mentioned anthropic in the post, but would similarly find it interesting if someone did a write up about cohere. It could be that OAI is not representative for reasons I don’t understand.
Yep, revenue multiples are a heuristic for expectations of future growth, which is what I care about
This is true, but I’m not aware of any investments on $0 revenue at the $10B scale. Would love to hear of counterexamples if you know of any![1]
Instagram is the closest I can think of, but that was ~20x smaller and an acquisition, not an investment
Anthropic reportedly got a $4B valuation on negligible revenue. Cohere is reportedly asking for a $6B valuation on maybe a few $M in revenue.
AI startups are getting pretty absurd valuations based on I’m not sure what, but I don’t think it’s ARR.
Thanks! I mentioned anthropic in the post, but would similarly find it interesting if someone did a write up about cohere. It could be that OAI is not representative for reasons I don’t understand.