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Start-Ups Keep Revenue at Zero to Cash In on Acquisition - Disruptions - NYTimes.com
bits.blogs.nytimes.com/2012/04/29/disruptions-with-no-revenue-an-illusion-of-value/
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Small start-ups that make money often find it difficult to recruit additional investment. By keeping their revenue at zero, they can pluck a projected valuation out of thin air. Read more...
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All posts about this link
Disruptions: With No Revenue, an Illusion of Value http://t.co/2jbkVbBrPx
Yet an even more bizarre activity...is how some #startups are advised by #VCs not to make money. http://t.co/e2AaHlYse2 #siliconvalley
Is this the difference between Silicon Valley and Silicon Roundabout http://t.co/lpavlPhiDF
"Getting acquired while producing no revenue is like performing a card trick without the deck of cards" http://t.co/n0EoLsBD
#VC: Mark-to-mystery = the formula used to price "hype"-y startups with no recurring revenue
No revenue and the illusion of value, an attack on the freemium: http://t.co/KRjqIQJV #freemium #revenue #value
VC’s mark-to-mystery valuation. Maybe we should more accurately label them as BS capitalists
Mark-To-Mistery Valuation is NOT A GOOD WAY for Startup IPO. DON'T EAT ALL CAKE ALONE. YOU ARE DESTROYING THE MARKET