Demystifying unicorns: How startup valuations really work
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Demystifying unicorns: How startup valuations really work

1 year ago · 4 min read

Near daily headlines tout the massive valuations of startup companies and their potential public offerings. Some of these entities are valued well into the tens of billions of dollars.
Private market investors continue to pump money into technology-based companies
with the hope of cashing in on the next unicorn—rare startups valued at more
than $1 billion.

At the same time, many of these companies have yet to produce positive net income, with some reporting growing quarterly losses in the millions

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