As Investors Look For Value During the Downturn, Startups Offer Rare Opportunity To Invest At Compressed Valuations

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. […]

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