Base Hit to Homerun Values in a Startup Exit

Homerun EP

Image via Wikipedia

The business world loves sports metaphors. When I was at Duke in the late 90s the business school offered a course on sports metaphors geared towards foreign students because metaphors are so prevalent. One of the more common phrases for startups is homerun, meaning that the startup was bought for a huge amount or went public at a massive valuation. In addition to homerun, other types of baseball hits are used regularly.

Here are baseball hits to describe different types of approximate startup exit valuations:

  • Base Hit: $2 – $10 million
  • Double: $10 – $25 million
  • Triple: $25 – $100 million
  • Homerun: $100+ million

If the startup is in Silicon Valley multiple these by 10x otherwise this holds true for most parts of the country.

Sports metaphors are common in startup land and baseball hits are the most popular way to describe startup exits.

What else? Do you agree with these baseball hits to describe different types of exit valuations?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.