While recent market turmoil has been focused on valuation compressions in the stock market, there’s another opportunity investors should consider as the market looks to rebound. What happened: Similar to the compression seen in growth stocks, startups have seen a significant decline in valuations across all industries and metrics. Despite artificial intelligence (AI) being one of the hottest areas in the startup investing world , some AI startups are raising at significantly compressed valuations. RAD AI , for example, is a startup currently raising on Wefunder, which means anyone can invest in the company for a limited time. On its Wefunder raise page, RAD says, “We’ve been told we could raise at a valuation at least double the listed price for this round given that AI technology and software companies consistently raise at 15-50x contracted revenues, but we chose to price this round conservatively.” This is how you can potentially earn extra income every single month… Benzinga’s full-time trader Chris Capre is sending simple options trade alerts to traders like you. Click Here to get his trades for only $0.99! There might be something there. According to RAD’s recent audits, the startup is currently sitting at 31x 2021’s revenue. […]
As Investors Look For Value During the Downturn, Startups Offer Rare Opportunity To Invest At Compressed Valuations
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