

Biz Stone outlines Twitter's revenue plans - cwan
http://www.thedeal.com/dealscape/2009/09/biz_stone_outlines_twitters_re.php

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byoung2
_Once a startup has revenues, its valuation may be tied to a multiple of
revenues. Without revenues, a popular startup such as Twitter may be in a
stronger position to name its price._

Why does that seem so backwards to me?

~~~
whatusername
it makes a perverse sense.

It almost becomes a bluffing game - obviously Twitter can generate _some_
revenues. Deals are done on the basis of future revenue. If current revenue is
unknown - then everything is just based on projections..

"It is better to stay silent and be thought a fool rather than speak and
remove all doubt"

Once you're generating revenue - a buyer has to show how they could do it
better. (Or buy you at Nx revenue - a loss for you)

