In 2018, Stripe wanted to acquire Airwallex for 1.2 billion dollars, while its annual revenue was only 2 million dollars, equivalent to a price-to-sales ratio of 600 times. The founder, Jack Zhang, rejected this 'early retirement' opportunity.
A few years later, Airwallex's annual recurring revenue has reached 1 billion dollars, with a new financing round of 330 million dollars, and its valuation has risen to 8 billion dollars, increasing by about 30% compared to 6 months ago.
What’s most interesting about this situation is:
The entrepreneur rejected the 'cap price' of life, validating his long-term belief in the industry and the company over time.
Capital is willing to pay a higher premium for high growth, indicating that the long-term trends in global financial infrastructure, cross-border payments, and the digital economy are still promising.
Of course, this is a rare case of extreme success; most companies offered a 600 times revenue valuation probably wouldn’t even hesitate. The real challenge lies in: how do you determine whether what you have is a chip close to its peak or just the beginning of a long cycle asset? $BTC
