… my partner Guy Kawasaki at Garage Technology Ventures developed a tongue-in-cheek algorithm for determining the valuation of a startup company:
Entrepreneurs ask us all the time how we figure out the valuation of a startup company. Most VCs suggest that this is a very mysterious art. But actually it’s quite simple: To determine the fair value of a startup company, multiply the number of engineers by $250,000, add $250,000 for each engineer from IIT, and then subtract $500,000 for each MBA.
Determining fair values of companies and IIT degrees