The SAI 50+: World's Most Valuable Internet Startups
October 28, 2009 – The Silicon Alley Insider
Facebook tops our list again, with a valuation of $6.5 billion. Facebook has grown at a tremendous clip this year, but digital media multiples have come down so Facebook’s value has stayed the same.
Rounding out the top five: Wikipedia, which we think could be worth $5 billion if it tried to make money; Betfair, the online gambling site; NewEgg, the e-commerce site that recently filed to go public; and Craigslist, which we think could be worth $3 billion if it tried to generate revenue in earnest.
#22 – Adknowledge
Estimated Value: $750 million
Business: Ad Network
Location: Kansas City, MO
CEO: Scott Lynn
Investors: Technology Crossover Ventures
Analysis: AdKnowledge's multi-platform ad network is expected to generate about $250 million in revenue this year after just five years in operation.
The jury is out for how well ad networks will perform in the future given the growth of bidding exchanges, which threaten the middle men, and a growing perception among publishers that networks undervalue online ad inventory. Still, we believe that ultimately there will be room for the strongest networks.
Given strong growth but questions about the industry, we apply a 3-times multiple to revenue, resulting in a $750 million valuation.
