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).

6 metrics· Cited 0× in the knowledge base ·Open source ↗

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