What about AirBnB? You don't think a $500M valuation would be considered reasonable by many? AirBnB seems like a classic example. $25M in revenue and $1B valuation (40x). The market moving slightly to a more hardcore earnings based valuation could easily see their valuation cut in half (20x).
No less of a company, but a slight change (yet reasonable change) could drastically effect their value (as it would with most startups at a similar phase).
No less of a company, but a slight change (yet reasonable change) could drastically effect their value (as it would with most startups at a similar phase).