REPOST: From Andreessen, a Lesson in Corporate Finance

Tweeting his tips about investments and technology valuations, renowned venture capitalist Marc Andreesen provided handy lessons on finance. Read some of his tweets in this article from The New York Times.  

Marc Andreessen, a venture capitalist on the board of Facebook, offered a
peek at how Silicon Valley values companies.
Image Source: nytimes.com

The valuations of highflying technology companies can seem baffling to those not initiated in the ways of Silicon Valley. 

Deals like Facebook’s $16 billion purchase of WhatsApp, a company that makes very little money, or its $2 billion acquisition of Oculus VR, a start-up that has not yet shipped a product to the public, can make a Wall Street banker’s head spin. 

But mergers and acquisitions in technology follow a different set of rules, according to Marc Andreessen, a prominent venture capitalist who happens to sit on Facebook’s board. In a series of tweets on Thursday, Mr. Andreessen offered a framework for thinking about technology valuations — relying on metrics that hard-nosed financiers tend not to consider.

Here is a selection of his tweets.

Douglas Anderson is the CEO of Wall Street Capital Partners. Highly skilled in the various aspects of corporate finance, private equity, and venture capital, he founded and co-chairs several other companies, including Diego Pellicer Inc. For more articles about finance, follow this Twitter page.