> A 1 billion $ valuation for a company that made 18 mil in sales?
That was 18M Euro (around $20M) and in a quarter. If that revenue was all recurring, that implies an $80M/yr run rate, or a 12.5x multiple on revenue to get to a billion dollar valuation. That's only 5x the current S&P500 price-to-sales ratio (and I'd surely expect startups with any sales traction to have a much higher ratio than US large caps, due to the much higher potential for growth).
It doesn't seem that crazy to me, which might mean that I'm the crazy one.
That was 18M Euro (around $20M) and in a quarter. If that revenue was all recurring, that implies an $80M/yr run rate, or a 12.5x multiple on revenue to get to a billion dollar valuation. That's only 5x the current S&P500 price-to-sales ratio (and I'd surely expect startups with any sales traction to have a much higher ratio than US large caps, due to the much higher potential for growth).
It doesn't seem that crazy to me, which might mean that I'm the crazy one.