For example, startups are always making loses but they are still valued by investors when they invest in the startup. In such situations, startups are valued as a multiple of the revenue. Typically in the internet space, loss making startups are valued between 15-30 times the revenue. So if revenue is Rs. 1 crore, then value of the company is 1 x 30 = Rs. 30 crores.
Aug 13 2012 04:08 PM