Re:Why did Heroku fail?
by tedmiston on Saturday May 14, 2022 @09:46AM
(#31377879)
Current revenue is not the right to focus on for an early stage acquisition.
They collectively raised $13M through the Series B in May 2010 and were acquired for $212M cash in December 2010 (technically ~$250M for the whole deal).
A ~16–19x return, especially that early, is pretty excellent.
That speaks to the product itself and its future growth potential and place in the market more than current revenue.
They collectively raised $13M through the Series B in May 2010 and were acquired for $212M cash in December 2010 (technically ~$250M for the whole deal).
A ~16–19x return, especially that early, is pretty excellent.
That speaks to the product itself and its future growth potential and place in the market more than current revenue.