How VCs Value Companies

I recently got introduced to Marc Goldberg’s Blog via Loic and soon came to ask a question how some of the higher values, especially of companies that are barely profitable, in take-overs comes from. Soon thereafter he he posted the folloing: Where are company valuation coming from ?

It’s a great insight and again shows that you need to do your valuations in context. For VCs that means that they need an exit strategy and that’s what the valuation is geared to. Very nice indeed. Thanks Marc.