‘Truly extraordinary’: Unicorn Startups Boast 300X Valuations

Orca Security’s March funding round made the two-year-old software startup a unicorn—and gave it an unusual claim to fame. With approximately $4 million in annualized revenue when it briefed investors early this year, the cybersecurity company’s $1.2 billion valuation translated to 300 times that revenue, according to two people familiar with the matter.

The Los Angeles-based company joins a growing class of startups in software sectors including cloud security that are commanding valuations of hundreds of times revenue. These prices reflect the blistering pace of VC investment. Hot startups are raising money more frequently than in the past and often revenue growth hasn’t caught up to the latest pricing. And as venture capitalists compete to win deals, they’re increasingly offering those young companies better terms.