Early Stage Valuation Multiples 1
We were able to find that Yelp made $1 million and $5 million, respectively in seed money. They also had a company valuation of $898 million and brought in $244 million in revenue in 2018. DoorDash made $2.4 million and $17.3 million, respectively in seed and Series A money. They also had a company valuation of $7.1 billion and brought in $116.7 million in revenue in 2018. There is more information found on the attached spreadsheet.
We were unable to find the IPO valuation for DoorDash because they are a privately held company. Due to this, we had to use Bloomberg to determine the company valuation for DoorDash. Our research team was unable to find the revenue for DoorDash readily available.
The first strategy we tried was to look for the financial statements on the DoorDash website. The company did not have their financial data available. The website only had customer related information nothing linked to a corporate site since the company is privately held.
As a second strategy, we looked through business databases like CrunchBase and Craft. Although there was plenty of redundant information like the company valuation and seed funding data, there was no revenue information available.
As a third strategy, we reviewed press releases to see if someone from the company has spoken about their revenue. Although we couldn’t find the 2018 revenue, we did find an article published by Bloomberg that says they had a revenue of $107 million in November 2018.
Since we had to estimate the revenue for the whole year, we decided to take the November revenue and divide it by 11 (the number of months) then added that ($9.7) to the reported revenue which gave an estimated total revenue of $116.7 million USD.
EARLY STAGE VALUATION FOR YELP
• Seed — $1 million USD
• Series A — $5 million USD
• Company Valuation — $898 million USD
• Revenue 2018 — $244 million USD
• Valuation Multiple — $898,000,000 (Company Valuation) / $244,000,000 (Revenue) = 3.7
EARLY STAGE VALUATION FOR DOORDASH
• Seed — $2.4 million USD
• Series A — $17.3 million USD
• Company Valuation — $7.1 billion USD
• Revenue 2018 — $116.7 million USD
• Valuation Multiple — $7,100,000,000 (Company Valuation) / $116,7000,000 (Revenue) = 60.8