Book value matters
DECEMBER 3, 2012
These dynamics beg the following question: Does creating intrinsic value matter in technology start-ups, or are operating cash flows all that really count to a (hopefully) fast-growing early stage business? By “intrinsic value” I’m referring to the worth of a business if it were to cease operating, with buyers offered the chance to purchase all or part of its assets. Going for the big win and creating asset value along the way are by no means mutually exclusive.