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March 30, 2007

Comments

Hervé

Hello,

What a cool way to valuate company! It could be less inacurrate than some complicated financial methods. However, this anaylisis considers only single domain name company. Let's take for example fotolia as an example. Fotolia exists under Fotolia.com, fotolia.fr, fotolia.de, fotolia.co.uk, fotolia.it ... Then it is difficult to estimate the real alexa rank. It should work for single domain name company at least.

jamie martin

great post

David Evans

A good first effort. Try Compete or Quantcast for stats, let's get past Alexa please. This should be a database-driven graph in Flash. I did one in Java a few years ago for the dating industry based on a free toolkit, best way to grok a sector quickly, but you want to be able to click a company and see a pop-up with deeper stats. Also want to see the funders of these companies, how they are related and other interesting analysis one can make with a glance. Looking forward to the next version.

Ryan Carson

I've got to say, I think this is ridiculous. The value of a company (if we're talking M&A) is only what someone is willing to pay.

We went through the process of selling DropSend awhile ago (which is profitable and solid) and its value is no where near the level of $30M. I think this is evidence that there is too much 'irrational exuberance' right now.

Companies should be focusing (IMHO) on being profitable and successful, not on 'how much they're worth' and being acquired.

Saurabh

The sites seem to be divvied up by category, as in: (a) order the social networking sites by hits (b) put the top one in the top group, middle one in the middle group, bottom ones in the bottom group. That explains why Orkut would be in the same league as Wikipedia.

As regards Orkut over Hi5 and Facebook, the reason for your doubt would be ignorance. Orkut is huge in India and Brazil.

Aphra Behn

You'd have thought by now that internet-boombers would have realised the hard lesson that only cash is cash. Clicks aren't cash. Options aren't cash. Stock isn't cash. Only cash is cash. Not to say that you don't put your cash into stock or get cash when you realise options, but only cash is cash.

And this woman's running a company?

Oh dear.

Aphra.

Pramila

The whole physics and chemistry of these internet startup's is difficult to evaluate and interpret. It's seems like nothing can be benchmarked here,every internet startup success, is really difficult to measure and evaluate, specially when there are so many of factors acting together.

I must say that Yael Elish, has done a very good job, as far as comparisons among the websites in overall aspects is considered.

The other day, I was preparing a list of all the web communities, like Myspace, Facebook, Orkut etc according to their popularity, I was in a fix whether to place orkut before facebook or Hi5.
Well total user count, total website traffic, revenue generated, Demographics, product features, product usage, sources for finding them, viral spread, brand recalling (in a mesh of web2.0 below the $30M would be difficult) Etc. are some metrics which I think should be considered while valuating the Web2.0

Ross Dulmaine

Hey Erick,
We're a web 2.0 start-up that's worth about $9.95.
If you have a spare minute check us out.

http://www.alternativeconsumer.com/

Love your magazine. I troll it for products to review and recently linked to a story.

Regards,
ross

Dick Harper

Ryan,

Did anyone say that Dropsend is valued around $30 mil? lets be rational in this crazy web2.0 world. I agree however that a business worth how much someone is willing to pay, a lot more factors to consider however such as who is making the offer ( my 70 y.o father will probably pay just 20 because he is stingy but a young and long term oriented businessman may pay 100 ) but in general this statement makes sence.

Dick

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