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  • In case you haven’t seen the news, Uber just raised a private round of $1.2 billion ($1.4 billion after a secondary round) at a post-money valuation north of $18 billion (can someone explain the difference between pre and post-money to the Huffington Post, please?). That’s insane.  A valuation bubble inside the Silicon Valley bubble.  The Uber Bubble. Don’t get me wrong.  I love Uber, even though the German in me cringes every time I see the spelling (it should really be Über with an Umlaut, people, how much cooler would that be?)  Despite the butchering of the spelling, I use the service whenever I can.  I am tired of dirty cabs, drivers who have no idea where they are going, or who don’t care about providing a pleasant service experience.  And yes, SFO airport authoritie

  • Probably the easiest way to do a quick valuation of your business is a multiple analysis. To do so, you need to know what financial metric is commonly used to value your business. Early stage businesses are often valued using a sales multiple because they don’t have positive EBITDA (earnings before interest, tax, depreciation and amortization) yet. Software companies, such as Software-as-a-Service (SaaS) companies, are often valued using a sales multiple even if they are already publicly traded and do have earnings. Let’s say you wanted to value your SaaS company. You would need the sales number for your business for the last twelve months. You then need to identify a handful of publicly traded companies that have comparable business models. One example for a SaaS company would be Sal

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