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BizEquity Hot Company Feature!

Posted by bizequity596028247 on 4/28/13 12:06 AM
Weeks after one of the most controversial $30 million acquisition of Summly by Yahoo! Inc (YHOO), the hype seemed to have died down. For the benefit of the readers, Summly, led by 18 year old Nick D'Aloisio, is an app that uses its proprietary summarizing technology for the mobile news app.
However, something big is still lurking in the marketplace. The breaking news was announced on TechCrunch on April 27th, that the internet giant, Google Inc (GOOG) has confirmed their buy on Wavii, the natural language technology start up. The deal was quoted at a price above $30 million, and it was also mentioned that Wavii is “known also for having technology similar to that of Summly, the summarizing app bought by Yahoo for $30 million”.
Forbes contributor, Roger Kay, had shared his insights that the Summly deal may not exactly be the best choice after all. Does the $30 million make sense for a licensed technology from SRI International? In addition, what would the valuation of a tech company with 0 revenue be?
No surprise if you are one of the SMB owners, developers, creative programmers etc. wondering what is behind the heightened M&A activity in the tech industry. What are the factors that contribute to the astronomical valuation figure for the start-up?
BizEquity values such high tech software publishers at 11.1 times SDE (Seller’s Discretionary Earnings), with many other necessary adjustment based on its proprietary valuation algorithm. Come and visit us, and find out your estimated valuation of your tech company within minutes in just 7 steps.
By Andrew Yeo, Senior Data Analyst, BizEquity

Topics: Uncategorized

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