Given the recent news like a $100MM pricetag for Geni, a big pricetag for Slide.com, and other companies, one might ask how long the current investing bubble will last.
And yes, I definitely believe there’s a bubble of some kind. I’ve seen a lot of deals get priced based on pure traction (eyeballs) rather than any revenue. We’re talking about valuations that are 100X or 500X revenues, which is an incredible multiple.
Any guesses on how long the bubble will last? Comments welcome.
My take on it is: Given that there are a couple companies out there with $10MM+ revenue streams growing quickly, in the social media space and especially within games, I think you’ll continue to see acquisitions and possible IPOs as far as 3 years out. But certainly there will be a bunch of implosions in that time which will limit the excitement.