[YPetrov]

I would be curious to find out why he chose $40M as the benchmark.

[pg]

There's a sort of threshold around there. A startup can raise at $20m after Demo Day by looking really promising, but to raise at $40m you usually have to be launched and growing consistently.

[carlosrt]

So presumably, companies that are on a ~$3M revenue run rate are a safer bet. Assuming a multiple of 15.