Back

Havish Gupta

Figuring Out • 9m

Why does even a 1000cr market isn't enough for a VC So most businesses generate maximum Profit Margin of 20%. That on a ₹1000cr ($150 M) is ₹200cr which is enough for an founder to retire. But if you think from a VC's point of view, the max valuation a ₹1,000cr revenue company can get is ₹10,000cr ($1.5 B) which is aldredy a 10 times revenue multiple. Now $1.5B valuation may look great but for a VC who owns about 10% stake, it's just $150 M. And also what we have considered is that 1) the Startup managed to get an 100% market share 2) A 10 times Revenue Multiple is considered (which won't be more than 3 today) 3) The founder diluted 10% equity which he may not irl (probobly) So in reality it doesn't make any sense. And also majority of the buisness ideas we think of are aldredy saturated or it's market size is much less than this. So probobly that's why your funding was rejected. What do you think?

21 Replies
8
22
Replies (21)

More like this

Recommendations from Medial

Havish Gupta

Figuring Out • 7m

Zepto just crossed 1000cr in Annualized Ad Revenue! For comparison, Blinkit's annualised revenue based on most recent numbers is 4,800 cr and Zepto is doing 20% of it through just through ads itself. They have also partnered with Park+ to deliver c

See More
Reply
5

The last guy

Let's make money • 4m

10%Equity on a jewellery Buisness by investing few grands of $ which has a valuation in crores. DM me to invest .

Reply
3
Image Description
Image Description

Havish Gupta

Figuring Out • 1y

If you think that all the telecom companies were closed due to Jio, So you are wrong! So untill 2002, companies didn't had to pay any fees in India. But in 2002, gov said that now they will have to pay licence fees as well as 8-12% of all revenue.

See More
8 Replies
1
18
Image Description
Image Description

SUMIT DVIVEDI

Learner • 1y

Which topic is considered one of the most challenging in DSA?

4 Replies
5
Image Description
Image Description

Piyush Yadav

"Turning vision into... • 5m

I run a transport company which operates in transportation of construction materials having valuation of 10 cr .I want to grow this company to 100cr .need guidance.

15 Replies
6

VCGuy

Believe me, it’s not... • 11m

Several reports indicate that OpenAI has doubled its revenue in <6 months. Late 2023: $1.6 B May 2024: $3.4 B 💡FutureSearch's report provides an interesting estimation of OpenAI's revenue breakdown - - $1.9 B from ChatGPT+, 7.7 M paying subscrib

See More
Reply
1
12

Purushotham Dharmavaram

 • 

Medial • 1m

Cred is in talks to raise $75 million from existing investors, including GIC, RTP Global, and Sofina, at a valuation of $3.5 billion, which is a significant decrease from its previous valuation of $6.4 billion.

Reply
3

Download the medial app to read full posts, comements and news.