“Life can only be understood backwards; but it must be lived forwards.” ― Søren Kierkegaard A few blogs back I wrote about valuations, how they are determined and how crazy they have been. In that piece, called Unraveling the Magical Mystery of Valuation Math, I talked about how valuations of private companies are derived and, […]
Unraveling the Magical Mystery of Valuation Math – How Do VCs Price Private Companies?
In the venture capital class I teach at Haas, the one topic that never fails to confuse is valuation, or how a private company is valued in an investment transaction. I’m not sure if it’s because math is hard, because valuation is based largely on not exactly math, or because it’s hard to keep track […]