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KENB: Prior valuation models for NFL teams have assumed a number of 3.9 times gross.
Gilt, for example, sold for just a fraction of its prior valuation.
We looked over some maths regarding its prior valuation, its recent revenue, and a current public-market comp.
Not only has its share price declined to a fraction of its prior valuation, but the firm is also under siege from its shareholders.
The dreaded "down round," when a startup raises capital beneath its prior valuation, is getting pushed back to the public markets.
A recent study from Cooley Godward notes that, in the fourth quarter of 2005, "up round" financings (in which a company's worth increased since its prior valuation) accounted for 70% of all deals.
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In tough times (or, arguably, just normalized times), smart companies recalibrate their valuation expectations in order to secure new capital and don't try to hang onto unsupportable prior valuations.
From the point of view of interactionist theory, all one's perceptions of and reactions to the external world are mediated or influenced by prior ideas, valuations, and assessments.
In some cases, acquirers and public markets are insisting on a discount from prior private valuations.
We looked at disclosures in S-1s (SEC filings) for prior private valuations and explored historical trading data from Bloomberg.
Even newly public companies that traded below prior private valuations, like Cloudera and Blue Apron, are still worth several times invested capital.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com