Mattermark has valuation estimates for startups who have raised funding. Customers will have access to valuations for more than 40,000 companies globally who have raised some disclosed amount of money being tracked by Mattermark.
Beyond estimates, we are reaching out to companies directly to collect their valuation information as they raise new rounds of funding to augment our growing set of verified company profiles.
I spoke with Sarah Catanzaro, who heads up our Data Team, to talk about the success of our proprietary first-party data collection efforts. She says,
“founders seem very open to giving us their valuations, especially at the early stages. When we do get an objection, it’s usually because investors have told them not to share their valuation information.”
The culture around valuation transparency has been shifting in the past few years, as the information asymmetry that used to benefit Silicon Valley insiders continues to break down. Most investors have a fairly good idea of what newly announced deals looked like, but when it comes to highly competitive financings the details definitely matter.
Within a certain range of ownership percentages, sophisticated investors can estimate how much a company has been valued at although negotiated terms like liquidation preference, voting rights and other terms that materially impact the deal are not usually disclosed.
Where This Data Comes From
Primary Sources – Over the past year, we have been working with founders from hundreds of startups to collect their valuation data as they’ve raised new rounds.
Publicly Available Content – we use distributed crawlers to harvest factual information from the Internet, so whenever a company’s valuation is revealed in a news story or other document on the Internet we collect that information and transform it into data.
Estimation Models – we leverage a form of computational learning called machine learning to build predictive models that constantly clean and improve our data set and provide higher quality estimates. The more data we collect, the closer to reality these models become.
Why We Decided to Add Valuations
Customers have been asking for valuation data for some time now, and while we love making customers happy we have some very high standards for adding a new column in Mattermark. However, the feedback we’ve received across the board is, “something is better than nothing” and we know we will save our customers a lot of time by not having to calculate these estimates themselves.
As estimates, this information will not be perfect but it will give us a general sense of industry trends and as round sizes continue to climb throughout the venture capital lifecycle there is a lot to keep an eye on. If you’re a startup founder, investor or employee who is interested in seeing what information we have on your company you can sign up for a free trial and reach out to email@example.com with any questions. Thanks!