What are Revenue Multiples?
Revenue multiples are a valuation metric used to compare companies based on their revenue.
It is calculated as: Company Valuation ÷ Annual Revenue
Example: If a company is valued at $500M and its annual revenue is $100M, the revenue multiple is 5×. This metric is commonly used to compare companies in the same sector.
What is a Cap Table?
A CapTable (Capitalization Table) shows the ownership structure of a company.
It lists shareholders such as founders, investors, ESOP holders, and institutions, along with the percentage of shares owned by each stakeholder.
What is ESOP?
ESOP stands for Employee Stock Ownership Plan.
It is a pool of company shares reserved for employees. These shares are usually granted to employees as part of compensation or incentives.
What is a Funding Round?
A funding round refers to the process where a company raises capital from investors.
Common funding stages include Seed, Series A, Series B, Series C, and later rounds, depending on the maturity of the company.
What is Market Capitalization?
Market capitalization (Market Cap) is the total market value of a company’s outstanding shares.
It is calculated as:
Share Price × Total Number of Shares
This metric is typically used for public companies.
What is Shareholding Percentage?
Shareholding percentage represents the portion of the company owned by a specific investor or stakeholder. It shows how ownership is distributed between founders, investors, ESOP pools, and other shareholders.
What are Company Achievements?
Company Achievements represent achievements or milestones attained by an organisation. These are conferred based on the size of the company, quality of associated team and the market it operates in.
For example:
Company A, which was founded by Stanford/ IIT alumni would get a Team based achievement for being managed by Top team
Company B, on reaching 1B USD valuation would get a Size based achievement for being a Unicorn
There are three segments of Company Achievements:
Size based achievements: Denotes company's achievement pertaining to its Scale (Click here for more details)
Team based achievements: Denotes company's achievement based on the marquee people or teams associated with the company (Click here for more details)
Market based achievements: Denotes company's achievement based on the Market(s) it operates in (Click here for more details)
Notes:
Company achievements are not granted for exited companies such as public, acquired and Deadpooled companies.
A company can have multiple size, team or market achievements.
The Company achievements are reviewed and updated on a monthly basis.
Size based company achievements
Size based achievements denote a company's achievement pertaining to its Scale.
A company is granted the Size based achievements if it has any of the following achievements:
Top Player among its competitors- A company which holds a high rank among its competitors is considered as a Top Player based on the below given logic:
Company Rank | No of Competitors |
Top 2 | 3 -10 |
Top 5 | 11-100 |
Top 5%ile | 101-1000 |
Top 50 | 1000+ |
For Example:
Company X, an online B2C retail Marketplace ranked at 5th position among 300+ competitors will be called a Top Player
Company Y, working in a niche space travel technology sector with just another player in the same domain wouldn't be classified as a Top Player
Company is a X-Corn- It denotes companies with high potential and high growth. The shortlisting is based on a combination of multiple publicly available information and detailed analysis of the company by our internal sector specialist team. The X-corn Club comprises of:
Decacorns: Companies with a valuation of 10B USD or more
Unicorns: Companies with a valuation of 1B USD or more
Soonicorns: Companies with high valuation and have good chances of soon becoming Unicorns
Minicorns: Early-stage companies with a valuation of 1M USD or more, that have the potential to become Unicorns in the long term
The term X-corn is used to refer to these four types collectively. Once a company goes Public, or is acquired or is deadpooled, it's not evaluated for X-corn any further. A company may have been marked X-Corn prior to any of this event.
To know more about Soonicorns and Minicorns, click here.
Team based company achievements
Team based achievements denote a company's achievement based on marquee people or teams associated with the company. A company is granted the Team based achievements if it has any of the following achievements-
Marquee Institutional Investor(s)- Marquee Institutional Investors are Top 2% of Corporate Investors/ Funds on Tracxn platform ranked according to Investment Score. For Example: Sequoia Capital, Accel, etc.
Market based company achievements
Market based achievements denotes a company's achievement based on the Market(s) it operates in. A company is granted the Market based achievements if it has the following achievement-
Belongs to a Trending Sector- Trending Sectors are collections of interesting business models which are handpicked by our sector specialists based on recent activity such as number of companies funded, funding received, etc. For Example: Banking as a Service, Novel Foods, Smart Fashion etc.
To explore Trending Sectors on Tracxn platform, go to Top Products > Sectors, Geos, Teams & more (Coverage Areas)> Trending in Sectors