Highlighted by Frédéric-Antoine Gingras
From PRESS RELEASE: BASECAMP VALUATION TOPS $100 BILLION AFTER BOLD VC INVESTMENT by Jason Fried
In order to determine the valuation of companies, Bhatnagar typically applies the following formula: [(Twitter followers x Facebook fans) + (# of employees x 1000)] x (total likes + daily page views) + (monthly burn rate x Google’s stock price)-squared and then doubles if it they’re mobile first or if the CEO has run a business into the ground before. Bhatnagar admits the math is mostly a guess but points out that “the press eats it up.”