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01

Jul

A few months back, I argued that the social web will be the catalyst of the next tech bubble, and the person to benefit the most will not be Mark Zuckerberg, but it will be the person that started the first bubble: Marc Andressen.
As companies prepare for IPO’s  I can picture bankers doing comparables and using users as the base for their valuations. I did the exercise to get the average value of a user using the latest public valuations and you get $62/user. The minimum value per users is $10 (instagram) and the maximum $133 (facebook). I excluded Groupon with a value per user at $500.
If you are raising funds, and have traction (users) I would not value the company at less than $10 per user.  I find it hard to believe Groupon will be able to justify a 30 billion valuation with 60m users.

A few months back, I argued that the social web will be the catalyst of the next tech bubble, and the person to benefit the most will not be Mark Zuckerberg, but it will be the person that started the first bubble: Marc Andressen.

As companies prepare for IPO’s  I can picture bankers doing comparables and using users as the base for their valuations. I did the exercise to get the average value of a user using the latest public valuations and you get $62/user. The minimum value per users is $10 (instagram) and the maximum $133 (facebook). I excluded Groupon with a value per user at $500.

If you are raising funds, and have traction (users) I would not value the company at less than $10 per user.  I find it hard to believe Groupon will be able to justify a 30 billion valuation with 60m users.