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manishsharan on Jan 22, 2014 | parent | context | favorite | on: Intercom raises a Series B round of $23M

I have always wondered what is the common definition for a billion dollar company . Is it the annual gross or net revenues or is it the valuation ? If it is valuation, what P/E multiple ?

codeonfire on Jan 22, 2014 | [–]

Is it not market cap > $1 billion? For pre ipo companies with no free cash flow it is amount someone invested divided by perecent equity they got > $1 billion.

pbreit on Jan 22, 2014 | [–]

Valuation. And no P/E since high growth companies have negative earnings (almost by definition).

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