An Interest In:
Web News this Week
- April 26, 2024
- April 25, 2024
- April 24, 2024
- April 23, 2024
- April 22, 2024
- April 21, 2024
- April 20, 2024
Some of Our Sources
- Spoon Graphics
- Abduzeedo
- Vandelay Design
- FanExtra - PSD
- Crazy Leaf Design
- Web Design Ledger
- CSS Globe
- Freelance Switch
- Daily Now
- Dev To
Help Webnuz
Referal links:
March 18, 2011 04:09 am GMT
As Groupon pursues its plans for an IPO, it's proposed valuation keeps on going up. First it was $15 billion, now it's $25 billion, according to a report by Bloomberg. Remember, it was only in January, 2011 that it closed a $950 million venture round at a valuation just shy of $5 billion. What's going on here? Is this yet one more sign of Internet valuations getting out of hand"dare I say the "B" word? One of Groupon's venture investors, Ben Horowitz of Andreessen Horowitz, doesn't think there is a bubble. At a press dinner last night in New York City, we were discussing valuations in general and he pointed out that Groupon is now doing "multiple billions of dollars in revenues." To be fair, Horowitz was in a roomful of bloggers and journalists trying to pin him down on a number and he was hemming and hawing, but he seemed to be referring to expected 2011 revenues. I take "multiple billions" of dollars to mean more than $2 billion, which was the annualized run-rate back in December. Compare that number with the $760 million in revenues for 2010 reported by the WSJ and you get a sense of its growth. Remember also that Groupon is only two years old. The faster the growth rate, the higher the valuation.But this isn't only about valuation, it's about ego. At $25 billion, a Groupon IPO would nudge Google to become the largest venture-backed IPO ever.
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/9sEMuvqmNlE/
Is Groupon Worth $25 Billion? Revenue Now "Multiple Billions Of Dollars"
As Groupon pursues its plans for an IPO, it's proposed valuation keeps on going up. First it was $15 billion, now it's $25 billion, according to a report by Bloomberg. Remember, it was only in January, 2011 that it closed a $950 million venture round at a valuation just shy of $5 billion. What's going on here? Is this yet one more sign of Internet valuations getting out of hand"dare I say the "B" word? One of Groupon's venture investors, Ben Horowitz of Andreessen Horowitz, doesn't think there is a bubble. At a press dinner last night in New York City, we were discussing valuations in general and he pointed out that Groupon is now doing "multiple billions of dollars in revenues." To be fair, Horowitz was in a roomful of bloggers and journalists trying to pin him down on a number and he was hemming and hawing, but he seemed to be referring to expected 2011 revenues. I take "multiple billions" of dollars to mean more than $2 billion, which was the annualized run-rate back in December. Compare that number with the $760 million in revenues for 2010 reported by the WSJ and you get a sense of its growth. Remember also that Groupon is only two years old. The faster the growth rate, the higher the valuation.But this isn't only about valuation, it's about ego. At $25 billion, a Groupon IPO would nudge Google to become the largest venture-backed IPO ever.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/9sEMuvqmNlE/
Share this article:
Tweet
View Full Article
Techcrunch
TechCrunch is a leading technology blog, dedicated to obsessively profiling startups, reviewing new Internet products, and breaking tech news.More About this Source Visit Techcrunch