After watching startups like Facebook, Zynga, and Groupon explode in valuation, VCs are now pouring money into the next crop of startups.
2011-08-03Valuations are skyrocketing as VCs compete to get in the next hot deal. They don't want to miss out.
And suddenly, a lot of founders are finding themselves in the billion-dollar club.
Do they deserve it? Let us know in the comments.
Quora has an $86 million valuation but thinks it's a billion-dollar company already
Quora is an $86 million-dollar company with a billion-dollar state of mind.
So far it has raised $11 million at an $86 million valuation from Benchmark Capital and individual investors.
Earlier this year it was rumored to be raising another round, but was rejecting offers that would make its valuation a "mere" $300 million.
The founders think Quora has far more potential than that. It supposedly turned down a $1 billion acquisition offer.
Foursquare hasn't found a way to make money, but it is valued at $600 million.
Location-based check in startup Foursquare closed a $50 million round in June. That's in addition to the $20 million it previously raised.
Foursquare's rumored valuation has been as high as $1 billion, but it is likely closer to $600 million .
Appnexus raised a $50 million round, sending it closer to the billion-dollar club.
Last year, ad bidding network Appnexus raised a $50 million Series C round.
It has raised $65.5 million so far, and is well on its way to a $1 billion valuation.
ZocDoc closed a $50 million round yesterday at a $700 million valuation
ZocDoc, a service for booking appointments online, closed a $50 million round from DST yesterday.
The company launched in 2007 and now has an estimated valuation of $700 million.
Spotify's latest $100 million round shot it up to a $1 billion valuation.
The music company raised $100 million in June from Kleiner Perkins, Accel and DST, giving it a $1 billion valuation.
We've yet to see a wildly profitable online music company, though, and Spotify needs to figure out how to make money. It has to pay record labels a lot, so without a clear business model, the valuation looks airy.
Storm8 is rumored to be raising a $300 million round, which would give it a $1 billion valuation
TechCrunch says mobile gaming company Storm8 is raising a whopping $300 million round. Accel Partners and Technology Crossover Ventures could be leading the charge.
If it closes, Storm8 will be bumped up to billion-dollar-valuation status.
Square also has a $1 billion valuation.
Jack Dorsey's mobile payment solution, Square, is another billion-dollar startup.
Kleiner Perkins led a $100 million round of financing at the end of June. Now the company has a $1 billion valuation; some wonder if it could be worth as much as $2 billion.
Gilt Groupe raised $138 million in March and has a $1 billion valuation.
Earlier this year, the flash sales site raised an additional $138 million.
It's on track to generate $500 million in revenue this year.
Airbnb recently joined the $1 billion valuation club when it raised $112 million.
Despite all the negative press, Airbnb is doing very well.
In 2010, bookings grew 800% to 800,000; that number is increasing by 40-50% per month.
Last month it raised a massive $112 million round, reaching a billion-dollar valuation.
Vente Privee is a $3 billion company that's trying to become a $15 billion company.
Private sales site Vente Privee currently has a $3 billion valuation, but its founder, Jacques-Antoine Granjon, wants that number to be much higher.
In 2010, Vente Privee's revenue was $1.3 billion. This year it is on track to do $1.5 billion. Granjon wants that number to become $15 billion by turning his site into the Amazon of Europe.
Dropbox is leading the pack with a valuation between $5 and 10 billion.
Dropbox closed a $7.2 million round in 2007, but it is rumored to be raising a more substantial round now.
TechCrunch heard that the file storing/sharing company is raising between $200 and $300 million.
Depending on the final number, Dropbox's valuation could jump from $2 billion to $5 or $10 billion.
WILD CARD: Rovio only has a $200 million valuation, but if Angry Birds keeps its momentum, it could become a billion-dollar company.
Last year, the Angry Birds maker generated $5 million in revenue and $3 million in profits.
In March, Rovio raised a massive round, shooting its valuation up to $200 million. It's a bit of a stretch, but if Angry Birds keeps up its momentum, it could turn Rovio into a billion-dollar company.