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« "La Pub Face à la Nouvelle Donne du web 2.0" ! | Main | Minilivre Photoways et iPod Nano ! »

December 22, 2006

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Discussing about valuation is always a little difficult if we do not have all the cards on the table.

I remember that we had a discussion about the fact that EBITDA was the only real thing to look at : who cares selling 100M$ if he doesn't make a cent of it? I am sure that linkedin's "pure-internet" margin is pretty higher than the ones in e-commerce, don't you think so?

Indeed, VCs are really concerned only by one multiple, the one they will make when they will exit the company from their portfolio! No matter they pay 100 times sales, if they can multiple the investment by 5 in 2 years!

So, when, you look at deals such as MySpace, Youtube, or other recent ones, a 250M$ valuation might transform in a very few years in a great multiple, and a pretty nice IRR! I would bet Linkedin will go public, in 2008/9!

Still, what I really do not get, is why 13M$? Linkedin is the biggest, by far, it seems to be cash-flow positive, why would they raise money? Working capital issues? Acquisitions? What do you think?

Indeed, a social network model is pretty different than an e-commerce one !

Different margins, different cost structure, different model sustainability, different key success factors, etc...

So when , i tell her favorite man.

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