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12 Startups With Very High Valuations

         

engine

11:06 am on Aug 4, 2011 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



12 Startups With Very High Valuations [businessinsider.com]

After watching startups like Facebook, Zynga, and Groupon explode in valuation, VCs are now pouring money into the next crop of startups.

Valuations are skyrocketing as VCs compete to get in the next hot deal. They don't want to miss out.

And suddenly, a lot of founders are finding themselves in the billion-dollar club.


I still find some of those high valuations just plain crazy.

graeme_p

11:29 am on Aug 4, 2011 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



The problem is that there is no real way to value these, so valuations are guesswork.

Most companies are valued on an profit multiple or a discounted cash flow.

When you do not know how much money something is going to make, how do you value it?