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 Facebook Inc., with a valuation of $6.5 billion, once again tops Silicon Alley Insider's SAI 50+: The Most Valuable Internet Startups. Facebook, which has raised a reported $716 million in funding, including $240 from Microsoft Corp. (NASDAQ:MSFT), "has grown at a tremendous clip this year, but digital media multiples have come down so Facebook's value has stayed the same," says the business blog, continuing: Rounding out the top five: Wikipedia, which we think could be worth $5 billion if it tried to make money; Betfair, the online gambling site; NewEgg, the e-commerce site that recently filed to go public; and Craigslist, which we think could be worth $3 billion if it tried to generate revenue in earnest. SAI judges the valuation of privately held companies based on implied valuations in recent private fundings, financial performance (including revenue), market share and market size, and growth rate. But "valuation is highly subjective, and it is only as good as the information on which it is based," acknowledges the blog. - Mary Kathleen Flynn
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From: InsideSix,
To get an idea of how rigorous this analysis is, check out the detail of their analysis of the number 3 on their list, Betfair. They've listed "Andrew Twaits" as Betfair's CEO. Mr. Twaits has never been CEO of Betfair. He runs the (small) joint venture between Betfair and PBL, Betfair "Australia". It takes no more than 1 minute to check that information using google or even Betfair's own corporate website, www.betfaircorporate.com to find out that the CEO is David Yu and has been for years. If they've got something as basic as that wrong, and haven't even spent a minute researching the 3rd company on their list, then I doubt they've been any more rigorous about the others. This index is total garbage, and only of interest to lazy journalists.
Posted on:
October 30, 2009 3:36 AM
From: InsideSix,
I've just looked back and now they've updated it. Someone's pointed out their obvious error. They've added some other information too: apparently their investors include Soft Bank (sic). Presumably they're in some way connected to the giant Japanese internet investor Softbank, backers of the odd startup including Yahoo! What are the chances that someone has a clue about valuing internet startups that hasn't heard of Softbank? Jesus wept.
Posted on:
October 30, 2009 3:50 AM
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If you want evaluate a company, check how much profit they are making a year: Facebook is not currently making the profit of £7bn company - most users don't want to know about the ads. If you ask me Facebook is worth no more than $1bn since they made 300 million profit last year