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The Fuzzy, Insane Math That's Creating So Many Billion-Dollar Tech Companies

Snapchat, the photo-messaging app raising cash at a $15 billion valuation, probably isn't actually worth more than Clorox or Campbell Soup. So where did investors come up with that enormous headline number? Here's the secret to how Silicon Valley calculates the value of its hottest companies: The numbers are sort of made-up.

posted by Daniela Arens on Mar 18
Published at: March 2015
Author: Sarah Frier and Eric Newcomer
Type: Web article
Categories: Funding
Tags: valuations