Cognition’s valuation doubled in 15 weeks. So did its revenue, and the multiple barely moved.
Cognition raised over $2bn at a $48bn valuation, up from $26bn in May. Run-rate revenue rose from $492m to almost $900m over the same period. Both rounds price the company at roughly 53 times run-rate revenue, so the multiple did not expand.
Cognition has raised more than $2bn at a $48bn valuation. The company announced the Series E on Monday, with Andreessen Horowitz and Accel leading as new investors.
Founders Fund, General Catalyst and Avenir returned. The syndicate also includes T. Rowe Price, DST, Bain Capital Ventures and NVIDIA.
Do the division
Cognition raised over $1bn at $26bn in May. That round reported run-rate revenue of $492m.
The new round reports almost $900m. Both prices work out at roughly 53 times run-rate revenue.
Investors did not pay a higher multiple. They paid the same multiple for twice the revenue.
Why that is the interesting number
Bubble arguments usually...
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