Gurley criticizes entrepreneurs who seek 10x revenue valuations regardless of business quality, citing his blog post analyzing public tech multiples.
“Most entrepreneurs think they all deserve 10 times revenue and also with zero regard for what the revenue is.”
Gurley says cloud credit investments are definitively low quality revenue despite auditor approval.
“From the big company players' side, I would just say definitively, this could get me in trouble, but This is flat out low quality revenue.”