How exactly are new economy deals valued?

Hotmail would have died out if Microsoft hadn’t bought the email service. And it later proved to be a great bet for the company.

How exactly are new economy deals valued?
Hotmail had no revenue, and would have probably died out if Microsoft hadn’t bought the email service for a whopping $400 million. And it later proved to be a great bet for the software company. Considering the FB-WhatsApp M&A, just how exactly are new economy deals valued? There are no easy answers. It is more “art than science” as most experts believe. Saurabh Srivastava, co-founder IAN, says VC assesses how the team is, and its execution skills.



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