Tomasz Tunguz's Blog (Theory Ventures) · 2014-10-10 · 4255d

Financing Patterns and Valuation Efficiency in Billion-Dollar Startups

Analysis of 49 privately-held billion-dollar startups reveals that Consumer and Enterprise sectors are nearly evenly represented, but consumer companies achieve 67% higher median valuations. The study identifies valuation efficiency (valuation divided by capital raised) as a key metric and finds that certain subsectors like Social Media and Financial Services achieve outsized valuations relative to capital raised.

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Metrics in this report

Billion Dollar Club Total Count

49companies

count

Privately-held startups analyzed

Median Capital Raised - Big Data

900$M

median

Big Data enterprise subsector

Median Capital Raised - Consumer

350$M

median

Consumer sector startups in billion-dollar club

Median Capital Raised - Enterprise

219$M

median

Enterprise sector startups in billion-dollar club

Median Capital Raised - Social Media

267$M

median

Social Media subsector

Median Valuation - Big Data

4.1$B

median

Big Data enterprise subsector

Median Valuation - Consumer

2.0$B

median

Consumer sector startups in billion-dollar club

Median Valuation - Enterprise

1.2$B

median

Enterprise sector startups in billion-dollar club

Median Valuation - Social Media

3.1$B

median

Social Media subsector

Snapchat Valuation Efficiency

67ratio

calculated

Top performer overall

Valuation Efficiency - Consumer

5.7ratio

median

Consumer sector (valuation per dollar raised)

Valuation Efficiency - Enterprise

5.5ratio

median

Enterprise sector (valuation per dollar raised)

Valuation Efficiency - Financial Services

24.6ratio

median

Financial Services enterprise subsector (highest among enterprise)

Valuation Efficiency - Social Media

11.4ratio

median

Social Media subsector (highest among consumer)