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Medium news, startups: If you start generating cash, you can sell for 4x ARR
Everbridge's deal shows that startups shouldn't expect their valuations to be salvaged that much by cash generation if their growth is all but zero.
The Everbridge deal is good fodder for better understanding exit prices for technology businesses today. Over the past few years, the company has gone from being a fast-growing software business to a slower-growing, but more cash-generative entity, so its exit price has a few lessons for founders. Everbridge helps governments and enterprises from across the industrial spectrum respond to emergency situations, and it operates in a market that could prove fertile provided global political and meteorological instability continue to ratchet higher.
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