Freenome: Funding Analysis

Goals

To determine the valuation multiple for Freenome's latest funding round.

Early Findings

While information about the last two funding rounds was available, the valuation multiple for the company for them was not specified. As Freenome is a private company, they are not required to publish such information. In fact, the company has declined to comment about their valuation on several occasions.
  • Freenome has raised $238 million in 5 funding rounds, the last two rounds being in August 2018 and July 2019.
  • In August 2018, the company raised $7 million in a Series A funding round, led by Anne Wojcicki, co-founder and CEO of 23andMe.
  • In July 2019, the company was able to procure an additional $160 million from 23 different companies in a Series B funding round. The investment was led by RA Capital Management and Polaris Partners.
  • According to Crunchbase, the company's valuation is estimated in the range between $500 million and $1 billion after the last funding round of July 2019. Considering that the company's estimated revenue is $6.5 million, that would give it a valuation multiple (EV/Revenue) of 76.9 to 153.8.
  • According to Equidam, Pharmaceutical companies usually have a valuation multiple (EV/EBITDA) of 12.93.
  • On the other hand, data from the New York University shows that R&D drug companies have a valuation multiple (EV/EBITDA) that vary between 16 and 22.5 depending on whether the company is a pharmaceutical company or a biotechnology one.

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