kellblog.com · 2016-05-23
· 3664d
Why Media Should Stop Sizing Private Companies by Valuation Instead of Revenue
Dave Kellogg argues that financial media misleadingly measures company size by valuation rather than revenue, inflating perceived company scale by up to 20x. He contends this practice is inherently misleading, unverifiable for private companies, and echoes the discredited metrics of the dot-com bubble era (1997-2001).
Metrics in this report
Domo Estimated Revenue
50-100$ millions
estimated range
Domo private company valuation context
Dot-com Bubble Period
1997-2001years
historical period
When valuation-based sizing was last prevalent
MongoDB Estimated Revenue at Leadership Change
50-100$ millions
estimated range
At time of Max Schireson departure
Palantir Revenue
1$ billions
actual
Bookings in 2015
Stance Sock Company VC Raised
116$ millions
approximate
Total VC funding
Valuation to Revenue Inflation Ratio
10-20xmultiplier
range
Private company valuations versus actual revenues