Those billions of dollars in valuation of technology start-ups are how come?sold $ 19 2015 Latest Nike Shoes billion in WhatsApp, financing valuation of $ 18 billion of Uber, 100 billion dollars Airbnb, allegedly being approached and Alibaba investment, valuation $ 10 billion SnapChat \u0026 hellip; \u0026 hellip; the price valuation of technology start-ups emerging , also often people do not understand. WhatsApp really worth so much money? Technology giants and venture capital is still racking our brains to come up with these numbers with a crystal ball? They used up Air Jordan 8 too much money, or really feel that their investment can exchange for the greater good? For many Industry insiders, the company's valuation is an art, not a science. Each has a different approach and focus, subtle differences in assumptions Air Jordan 17 and speculation also allow different companies' prices vary. Here are several ways to tell you these estimates roughly how technology sector counted out. What is the future value of the company? For investors, the value of a company today, almost entirely depends on what you think it can be worth at a future point in time. After all, even the best investment, only when you sell it, after the real money hand, can really calculate gains and losses. Therefore, almost all the investors in considering the valuation, the first thing to consider in future value. This future point in time often depends on how long you intend to hold firm. Despite everyone's views on this point are similar in how to calculate the value of the company there is a huge difference. That is each analyst's housekeeping magic \u0026 mdash; \u0026 mdash; that the most correct in their own way, they calculated the company's psychological price. Common future value model can be used in sales, profits, cash flow, etc. in different ways to predict, the way in which cash flow calculations are particularly respected by analysts. As early as in the thirties John Burr Williams on cash flow valuation method described in the 'Investment Value Theory', but until the 1980s it became a Wall Street analyst for each essential tool in any introductory finance textbooks are listed The first lesson valuation. These methods are required to calculate the future value of the future predicted growth rate of investment companies. This is also one of the most difficult valuation section \u0026 mdash; \u0026 mdash;? The form of ever-changing technology industry, how do you know today's star companies not years after the beginning of the century deadwood technology bubble on the part derived from the investors for the future development of excessive optimism, but MySpace has also been a smash hit when no one mentioned. However, it can not hold everyone for \u0026 ldquo; future \u0026 rdquo; optimism of the word. How much risk? Risk is difficult to predict, and throughout the course of valuation. For those who pay, anything can be risks. The company is too small, the policy is too strong, the market competition, the economic situation \u0026 hellip; \u0026 hellip; every small company can become the cause of death. The famous investor David Gladstone once said: \u0026 ldquo; experienced VCs do not believe that there is no risk of world trade. \u0026 Rdquo; when judging how much to pay for the company, intuitive risk assessment and risk prediction indirect decisive. For startups, the most important risk factor is the company's scale. From just the creation of the seed, start-up, to gradually have a certain amount of income and development stage and expansion stage business model, and finally have a stable profits, large-scale maturity and pre-IPO Nike Air Max Womens stage. According to the company which has been valued at a stage where investors because of the huge risks that differences require different rates of return. In the venture capital industry, internal rate of return is the most important data \u0026 mdash; \u0026 mdash; the performance of all private funds are used to measure the internal rate of return. In Gladstone's book 'venture capital investment', he used a diagram describes the internal rate of return investors expect at different stages. Take Airbnb, their A round of financing, only seven million US dollars, the just-concluded D round is approaching five hundred million US dollars, the company's valuation has gone all the way to ten billion US dollars. This is where the difference is not just their income or business model, but also from risky they finally crossed the seed stage to the relative stability and maturity extension. \u0026 Ldquo; ten start-ups fail \u0026 rdquo ;, nine little seed-stage companies to sustain profitability last time. What comparable transactions in a more simple way is to look directly at similar companies in the industry to sell what price \u0026 mdash;? \u0026 Mdash; in this way is more intuitive and more realistic. Of course, no two exactly the same company, they naturally can not be the same valuation. It then invested according to different characteristics between the companies, such as company size, management, current profitability, etc. Adding and Subtracting roughly calculated the company's market price. In the process of privatization in Dell, Goldman Sachs report to shareholders on a detailed comparison between it and other companies HP and industry valuations. Taxi valuation Lyft D round was $ 700 million after. The same is called the car service Uber larger just after the end of D round was worth to 18 billion. The next time I am afraid, first with Uber prices to bargain when Lyft financing. Valuation many competitors in this industry, it also reflects heat, Instagram 10 million purchase price with the fire of a number of pictures of social networking applications, all valuable. Competition soft conditions in addition to these mainstream methods, there are many nuances affect the final transaction value of a company. The process of negotiations with Aunt similar bargain shopping. If the company is willing to give a seat on the board, or to get out of these shares have control over, then the price will be expensive some. If the company is given preferred stock, then the venture will be willing to pay more money. The company's Air Jordan 13 management has a strong industry background are often very popular, there is a mature business plan of the company is also very popular. Square inception welcomed by the venture, from the founder, co-founder Jack Dorsey had had Twitter, the start time has been a wealth of experience. While others are much more subtle soft power \u0026 mdash; \u0026 mdash; founder reputation in the industry, whether it has compressive strength, even when it meets the character's words and deeds reflect the character, they are likely to vote Nike Air Presto Mens about whether to invest in wind decision. Many venture even a required course, as the psychology of investment \u0026 mdash; \u0026 mdash; choose a tricky CEO more than anything else. Professor of psychology at the University of Chicago Jordan Jacobowitz cooperation with investors Leslie Pratch studies show that psychological analysis system can effectively reduce the risk Air Jordan 11 of the venture side collar. VC battlefield and, like any market, supply and demand determine the price of a lot of time, and these minutiae show soft power to make some companies more by VC's favor, so as to obtain more favorable investment. Prior to completion of the transaction, investors generally will these reference values are counted once, even discussion based on the economic situation, industry trends forecast situation. However, there is no absolute ruler \u0026 mdash; \u0026 mdash; for many people, a company worth their hearts have been several, calculate these reference values just to prove his own estimate, but also to investors expected a general range. Why is the technology giant's acquisition of an important part of WhatsApp expensive price tag is \u0026 mdash;? \u0026 Mdash; it is the acquisition of other technology companies. For Facebook and Google and other technology giants, the main purpose of which is the acquisition of start-ups may not expect to profit directly, and often have more strategic significance. For these technology companies, they do not need to sell is limited to the period of private equity funds can be more patient and wait for the acquisition of the company's growth. Facebook to buy WhatsApp probably did not expect it to be profitable over the years, hundreds of millions. Google also have time to mature slowly and so Nest, until the peak of popularity. Because not fund, they pressure for short-term rate of return is relatively small \u0026 mdash; \u0026 mdash; as long as the long-term benefit of shareholders that the acquisition of the company, then the stock would not be affected much. They hired investment bank analysts also generally higher than the mean estimate of VC in the larger party. On the other hand, the original holders of the company's private equity funds, to the harvest season, we naturally have to sell at a good price for their fear of starting from seed stage companies. Investment and shot phase, the company's development of the state determines the psychological level of venture capital. These factors created a company to acquire financing across the stage, prices are likely to be turned several times. They do not fly outside world for the biggest misconception valuation of the company may be this: These estimates necessarily accurate. In fact, there is no estimate is accurate, it is impossible to estimate what is absolutely correct. Investment is a risk probability of the process, most people rarely bet on a company, as the saying goes \u0026 ldquo; Do your eggs in one basket \u0026 rdquo ;. Buy twenty lottery in the hope that one of them winning a few small prize, like the balance of payments. Investors always want to have in a number of companies like Facebook as a superstar, then sell some development and stability of the company, the rest will not lose too much money will be satisfied. Many investors in the company estimates that the price was secretly to the process, in fact, and racking our brains are also nearby. Despite all it seems to make complex models and digital evidence, but as said before: This is an art, not a science. The next time you see the exaggerated amount of investment, in fact, can safely shouted:! Outrageous article from the 'curiosity Daily' www.qdaily.com