Billion Dollar BabyThere was a time, not so very long ago, when $1 billion was a lot of money. But apparently that is no longer the case in Silicon Valley, where these days not a week goes by without a rumor about yet another company raising money at or near a $1 billion valuation.
Lately there’s been Snapchat, an app that lets you send photos that disappear in seconds, which TechCrunch reports has raised money at an $800 million valuation, two weeks after originally reporting that the company was being valued at $1 billion. Also rumored to be valued at $1 billion are Path, a social network, and Fab.com, an online commerce site.
This might not be so strange, except these companies (e.g. Snapchat, Path) have little in the way of revenue, and as for profits, well, you must be joking.
If this seems a bit extreme to you, you’re not alone. As Quentin Hardy of the The New York Times recently reported, “The number of privately held Silicon Valley companies that are worth more than $1 billion shocks even theRead More »from Billion-Dollar Babies: Are All These Little Companies Really Worth $1 Billion?