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Why should inputs ("5 months old, $50K in") cap valuation when something unique has been created?

That'd be like setting prices by costs rather than value!




Because the buyer could build the technology themselves for $50K in 5 months. (Okay, $100K in 10 months, given the efficiency of large corporations.)


Assuming the buyer has the programming talent and vision to create it, and the managers to allow something "crazy" to be built. That's rare in large corporations.


And assuming that a 5-month delay wouldn't cost 10s-of-millions.


And assuming the startup in question has not acquired a few key patents. And assuming the startup made no unique-but-necessary technical decisions that can't be replicated without relying on information obtained under NDA.




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