valuations

How Billion-Dollar Tech Startups Get Valued With Phoney Math

How Billion-Dollar Tech Startups Get Valued With Phoney Math

Not too long ago, we documented how Uber was "worth" $40bn. Soon after, Chinese tech startup XiaoMi shattered Uber's eye-gorging valuation by becoming the world's most "valuable" startup, on top of being the world's 4th largest smartphone maker.

What we didn't however touch on was how these private tech startups, a great majority of them in Europe and America, get their preposterous valuations. Specifically, we said: "Of course, because Uber is still privately held, valuations are always going to be a fishy affair."

It doesn't make an iota of sense that a ride-sharing tech startup such as Uber would have a $41.2bn price tag stuck to it; close to double what Twitter is currently worth, and on par with some of America's big names including the likes of Delta Airlines, Time Warner Cable, and just $10bn shy of General Motors.

How Uber Lost 1.36 Billion Customers Just Like That

How Uber Lost 1.36 Billion Customers Just Like That

Exactly on the 1st of January 2015, Beijing's Traffic Enforcement Unit banned the operation of "illegal" taxi services in the capital after receiving complaints from passengers. In its eyes, unlicensed taxis, which includes Uber vehicles, are "taxi clones" and affirms that private cars operating through taxi applications is considered an act of illegal operation. The Ministry's stated reason for the ban was to protect the "hired car" market from unfair competition. This is the standing opposition of antagonists be it in Beijing, or in New York.

So for now, it is one market - which turns out to be the world's most populous nation - down; the $41.2bn price tag remains, no discount as of now. We patiently wait for positive positive (hopefully) developments, and most importantly, strategies to side step its mounting hurdles; because absent which severely limits the company's potential.

China's XiaoMi Trumps Uber As World's Most Valuable Tech Startup

China's XiaoMi Trumps Uber As World's Most Valuable Tech Startup

XiaoMi has done it again. After receiving a little over $1.1bn through a stock sale in a 5th bout of funding on 29 December 2014, the mobile phone maker is now valued by private investors at $46bn; this is $4.8bn higher than Uber, the runner up. XiaoMi is without question one of the most valuable tech companies in the world as the WSJ reports. It seems quite a handful of noteworthy investment names such as Singapore's very own GIC and Temasek Holdings, the former as Singapore's Sovereign Wealth Fund, are involved in XiaoMi's latest bout of funding.