Amazing job by Vayable! And congrats to everyone running a revenue-generating startup at YC if this is enough of a trend that Bloomberg is reporting on it!
I really hope that this signals the advent of a genuine change in how mainstream investors value revenue-generating startups, so that early-stage companies can get away from being valued simply in terms of a revenue multiplier and thus penalized in comparison to companies that ignore fundamentals. Among other things, this is going to make it much easier for bootstrappers, who need to build revenue into their products from the start.
And Paul -- if this is a real trend I hope you will follow up on this topic with an article in a couple of months. While I know this stuff is sensitive on a company-by-company level, it'll be interesting to hear how and if you perceive valuations are changing for YC companies that put their revenue front-and-center like this. My experience with a few friends in different funded startups outside California is that beyond seed rounds investors are still focused very heavily on users, users, users because the return period on organic linear growth is perceived as too long or uncertain to justify investing any sizable (greater than a few hundred thousand) infusion of cash.
I really hope that this signals the advent of a genuine change in how mainstream investors value revenue-generating startups, so that early-stage companies can get away from being valued simply in terms of a revenue multiplier and thus penalized in comparison to companies that ignore fundamentals. Among other things, this is going to make it much easier for bootstrappers, who need to build revenue into their products from the start.
And Paul -- if this is a real trend I hope you will follow up on this topic with an article in a couple of months. While I know this stuff is sensitive on a company-by-company level, it'll be interesting to hear how and if you perceive valuations are changing for YC companies that put their revenue front-and-center like this. My experience with a few friends in different funded startups outside California is that beyond seed rounds investors are still focused very heavily on users, users, users because the return period on organic linear growth is perceived as too long or uncertain to justify investing any sizable (greater than a few hundred thousand) infusion of cash.