Photographer: Hiroshi Watanabe/Getty Images

The Fuzzy, Insane Math That's Creating So Many Billion-Dollar Tech Companies

Startups achieve astronomical valuations in exchange for protecting new investors

Snapchat, the photo-messaging app raising cash at a $15 billion valuation, probably isn't actually worth more than Clorox or Campbell Soup. So where did investors come up with that enormous headline number?

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