Valuation Metrics

Part
01
of two
Part
01

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.

METHODOLOGy

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

Part
02
of two
Part
02

Early Stage Valuation Multiples 2

PostMates raised $5 million in Series A funding and has a valuation of $1.85 billion. GrubHub has a valuation multiple of 2.5, revenue of $1.07 billion. Our findings can be found on the attached spreadsheet.

Early-stage valuation for GrubHub

Early-stage valuation for POSTMATES

Seed — $1.2 million
Seed -$750K
Series A — $5 million
Revenue — $250 million
Company valuation — $1.85 billion
PostMates valuation multiple — 1,850,000,000 (company valuation) / 250,000,000 (revenue) = 7.4

Methodology

We were unable to find the IPO valuation and revenue for PostMates because they are a privately held company. Due to this, we had to use the information provided by Forbes and Recode to determine the revenue and valuation for the company.

The first strategy we tried was to look for the financial statements on the PostMates 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.

Then, we looked through business databases like CrunchBase, Hoovers and ZoomInfo, Craft. Although there was revenue information provide on the sources, there was no way to verify the authenticity of the figures as the sources all gave different revenue estimates e.g on Hoovers the revenue was stated as $13.64 million, $155.4 million on ZoomInfo and $1 billion on Craft.

Due to the conflicting estimates of the company's revenue provided by the business databases, we shifted our strategy to searching through press releases and media sites and we were able to find the revenue and valuation of the company published by the reputable sources Forbes, Inc, TechCrunch and Recode which mentions that PostMates had revenue of $250 million in 2017 and currently has a valuation of $1.85 billion.

The research team decided to stick with the information published by the media sites Forbes and Recode due to the sources being reputable and providing the same estimates of the company's revenue and valuation.

The company is privately held and has not made its financials public. Our decision of sticking with the figures provided by Forbes, Inc, TechCrunch, and Recode is due to the credibility of the sources.

In order to calculate the valuation multiple of the companies, we divided the company's valuation by their revenues.
Sources
Sources