VC Fodder Forums
Home   
Search
   Members   Calendar   Who's On
Welcome Guest ( Login | Register )
    
Recent Posts
  
Popular Topics

Home » The World of Fodder » Entrepreneurship a la Fodder » Valuation of Web2.0 companies


Valuation of Web2.0 companiesExpand / Collapse
Rate Topic
Display Mode
Topic Options
Author
Message
Pontifex
Posted 3/28/2006 4:44:08 AM
KinderFodder

KinderFodderKinderFodderKinderFodderKinderFodderKinderFodderKinderFodderKinderFodderKinderFodderKinderFodderKinderFodder

Group: Forum Members
Last Login: 4/16/2006 3:56:51 PM
Posts: 9, Visits: 13
How the valuation works for Web2.0 sites? Consider flickr/Delicious/Writely.. there are no ads, just the service for common use. Costs involved are webspace and bandwidth. There is no income most of the times. The network is the value. How are networks valued?
Post #583
BRodda
Posted 3/28/2006 12:44:20 PM


SophomoreFodder

SophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodder

Group: Forum Members
Last Login: 3/28/2007 8:52:56 PM
Posts: 144, Visits: 434
Right about now the rule of thumb from recent acquisitions is that a company like that is worth @$30 per registered user. Just a rough number though.

When I'm not making up new company ideas here I'm arguing engineering at CR4: The Engineers Place for News and Discussion as The Feature Creep.
Post #587
Ben Rowland
Posted 3/30/2006 1:25:47 AM


Fodder Chief

Fodder ChiefFodder ChiefFodder ChiefFodder ChiefFodder ChiefFodder ChiefFodder ChiefFodder ChiefFodder ChiefFodder Chief

Group: Administrators
Last Login: 3/4/2008 5:30:47 PM
Posts: 179, Visits: 845
FaceBook just turned down $750MM offer -- they are supposedly holding out for $2B.

Someone help me out here -- how can ad revenues on these sites possibly cover their immense bandwidth costs? I remain skeptical about many of these business models. Personally, I'd prefer to see something based off of revenue.

Ben
Post #589
BRodda
Posted 3/30/2006 8:22:24 AM


SophomoreFodder

SophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodderSophomoreFodder

Group: Forum Members
Last Login: 3/28/2007 8:52:56 PM
Posts: 144, Visits: 434
You can't believe how much ad revenue you can make off of one of these sites. The fact that the user base is one of the most sought after demographics, and they don't watch that much TV or listen to radio anymore and advertisers are scrambling to fins a way to get in front of them. Considering that their revenue scales in proportion to their audience, I have no problem seeing how they make money. Of course I spend part of my day figuring out how to monetize community websites.

 

When I'm not making up new company ideas here I'm arguing engineering at CR4: The Engineers Place for News and Discussion as The Feature Creep.
Post #590
« Prev Topic | Next Topic »


Reading This TopicExpand / Collapse
Active Users: 0 (0 guests, 0 members, 0 anonymous members)
No members currently viewing this topic.
Forum Moderators: Ben Rowland, SwiftWalker

PermissionsExpand / Collapse

All times are GMT -6:00, Time now is 3:48pm

Powered By InstantForum.NET v4.1.3 © 2008
Execution: 0.406. 12 queries. Compression Enabled.