logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 

Equities – Your destination to connect with the growth investment community.

Which Indie Startup Could Go Public Next?

  +Follow December 30, 2013 8:30AM
Share:
Tickers Mentioned:

On Oct. 30, Equities.com’s Michael Teague wrote an article concerning online clipboard/collage service Pinterest’s reported valuation of nearly $3.8 billion, asking how a company that “yet to generate one cent of revenue have the temerity to ask for, and receive, so much money?”

The short answer is: “it’s a red-hot tech property.” Tech has a history of making massive speculative bets. While that might, on the surface, seem reckless and counterintuitive, keep in mind that Peter Thiel bought 10.2 percent of Facebook Inc (FB) for $500,000 before that company had made one thin dime. That investment would go on to be worth in excess of $1 billion.

Then again, there's the Friendsters of the world. Once the hottest property in social media, between 2003 and 2006 Friendster lost 95 percent of its market valuation.

We thought it would be worth looking into some other hot tech properties, and whether their fate is to become the next Facebook, get gobbled up by Facebook – or become nothing at all.

Snapchat

Valuation: $3.5-$4 billion

Snapchat is unique in the world of social media, in that it takes the ephemeral nature of social media and amps it up to the extreme. In Snapchat, users take videos that after being viewed by the recipient disappear forever. How’s that for a fleeting social media experience?

Aside from Pinterest, Snapchat is probably the most ballyhooed  indie startup, with a user base of some 26 million and a novel platform. That valuation doesn’t come without serious questions, however.  Unlike Pinterest, Snapchat doesn’t have revenue. Of course, that’s not always a problem. But justifying their high price tag is a little tricky.

Snapchat, for what it’s worth, are pretty high on themselves. They rejected a buyout offer from Facebook. Then again, Facebook got the more popular Instagram for $1 billion, eventually ratcheted down to $715 million, which is an absolute steal.

Whether Snapchat was wise to hold out or missed their opportunity will become apparent soon. But regardless, at the moment they are probably the hottest property in tech.

WhatsApp

Valuation: $1 billion

Google Inc. (GOOG) was reportedly in talks to buy this company several motnhs ago for $1 billion, and nothing ever came of it. It makes sense, as Google tends to hold high interest in highly technical apps and services whose “wow” factor is high. Google’s traffic navigator Waze, which combines the utility of a traffic avoidance app with a social media company is a prime example.

Whatsapp is attractive because it allows users in different countries to instant message without the standard astronomical fees associated with international communication. And it’s monetization is apparent: after one free year, the service costs a buck a year.

With $350 million active users, that’s a lot of dough. Apart formt he other hot tech properties mentioned here, Whatsapp’s valuation makes the most sense, as it is born of verifiable revenue and not speculation.

Keek

Valuation: $600-$900 million

Keek combines YouTube, Vine, and Facebook into a sort of mish-mash social media platform wherein users upload video status updates called “keeks.”  What keek has going for it more than other hot startups, and especially the Social Media Establishment –Twitter, Facebook, and LinkedIn (LNKD) is massive popularity with young people.

85 percent of Keek’s users are between 13 and 25, a demographic especially coveted by advertisers. The video-sharing feature is tailor made for monetization, and is already perfectly primed for mobile.

FourSquare

Valuation: Approximately $600 million

FourSquare is pretty basic, in that it allows users to “check in” wherever they are, and connect with other users who frequent certain locations. FourSquare is the more established of the big startups, and in the fast-paced world of tech might have already passed its prime, with FourSquare’s Vice President acknowledging back in November 2012 that their growth was slowing and revenue had cooled.

However, FourSquare’s intrinsic tie to commerce makes it incredibly attractive to a buyer from outside the tech sphere, possibly even a credit card company. FourSquare has already started partnering with companies to offer deals to frequent customers, and their future might lie in the arena of using voluntarily submitted  user information, and completing the transfer from a social media company to a marketing research one.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

None.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for goog
Dan
19 Apr 15 06:49:59
$GOOG high open interest range is 600.00 to 600.00 for option expiration 04/17/2015. http://t.co/6ndIbSJnQJ
Stock Hobbit
19 Apr 15 06:44:07
Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/4PeAfHwrWF
ForexTradingUnlocked
19 Apr 15 06:37:06
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/131sjHM0jD
Dan
19 Apr 15 06:34:38
$GOOG Max Pain = 545.00. Maturity = 04/17/2015. Previous close = 524.05. http://t.co/b0iY2tC6Qw
シグレ@ドラマ〜
19 Apr 15 06:32:02
日本では普及しないかも $goog
MAM_Trader
19 Apr 15 06:20:00
RT @stevewalker36: $GOOG #GOOG Sh #WharmonicS #Trading #Forex #FX #Stocks #Futures #Indicies #Commodities #Gold #Oil QQQ #QQQ $SPY #SPY htt…
Stock Wire
19 Apr 15 06:19:11
Google Inc's European Case Doesn't Faze Analysts, Here's Why $GOOG http://t.co/g63rveNh0G
Stocks News&Markets
19 Apr 15 06:18:28
$GOOG - MARKET SNAPSHOT: Peak Earnings Week To Follow Big Global Selloff http://t.co/crjSmcS2DC
NASDAQ
19 Apr 15 06:18:20
$GOOG - MARKET SNAPSHOT: Peak Earnings Week To Follow Big Global Selloff http://t.co/uytG6czUcd
john smith
19 Apr 15 06:18:10
$GOOG - MARKET SNAPSHOT: Peak Earnings Week To Follow Big Global Selloff http://t.co/Fmup4UcjVk
Live Stock News
19 Apr 15 06:18:06
$GOOG - MARKET SNAPSHOT: Peak Earnings Week To Follow Big Global Selloff http://t.co/zHvlZ0TMFg
Solo traders
19 Apr 15 06:17:58
$GOOG - MARKET SNAPSHOT: Peak Earnings Week To Follow Big Global Selloff http://t.co/CYp6u4TJew
Stock Wire
19 Apr 15 06:03:21
3 Reasons Google Inc. Fears http://t.co/ZqknrVLyRI Inc. $GOOG http://t.co/cRiSwb2a8N
Clayton R.
19 Apr 15 06:03:19
$GOOG http://t.co/zzGEvirsQD 'Tales of Zestiria' Gets A Fall Western Release And A New Trailer http://t.co/we0KFEccRo
Levered Up On Life
19 Apr 15 06:01:02
Google faces its Microsoft moment http://t.co/yzH9TxgnAA back in the day $GOOG supported similar EU action against $MSFT #OhHowTablesTurn
ProTradersNews
19 Apr 15 06:00:08
$VZ $GOOG: FCC To Auction Off Important Airwaves To Tech Companies: http://t.co/I0uBXRYMxW
FinancePress
19 Apr 15 05:53:51
$GOOG Google Inc.'s (GOOG) New Security Chief Views Security and Privacy As ...: Google Inc.'s (GOOG) New Sec... http://t.co/07Sy75V2On
Ruben
19 Apr 15 05:51:30
$GOOG - Motorola Goes on the Offensive Against Apple Watch http://t.co/tBwGepLxjq
NASDAQ
19 Apr 15 05:51:26
$GOOG - Motorola Goes on the Offensive Against Apple Watch http://t.co/oWrXZZqfLI
Sergio Gambarelli
19 Apr 15 05:51:25
$GOOG - Motorola Goes on the Offensive Against Apple Watch http://t.co/G9uV1YoSB8
Solo traders
19 Apr 15 05:51:20
$GOOG - Motorola Goes on the Offensive Against Apple Watch http://t.co/P7fj1Xbr2K
Stocks News&Markets
19 Apr 15 05:51:19
$GOOG - Motorola Goes on the Offensive Against Apple Watch http://t.co/nrp4O09j83
john smith
19 Apr 15 05:51:12
$GOOG - Motorola Goes on the Offensive Against Apple Watch http://t.co/zBHXMO7qpU
Live Stock News
19 Apr 15 05:51:09
$GOOG - Motorola Goes on the Offensive Against Apple Watch http://t.co/dH7mPnTa7G
Gilad
19 Apr 15 05:48:01
So Long, Passwords? Biometrics Begin To Open Eyes http://t.co/zMziNxkvTx #IBDNews via @IBDinvestors $QCOM $INTC $MSFT $CY $NXPI $SYNA $GOOG
Stock Wire
19 Apr 15 05:47:23
Google Inc.'s (GOOG) New Security Chief Views Security and Privacy As ... $GOOG http://t.co/DGckEKvrQV
James DiPlata
19 Apr 15 05:43:59
RT @Stockology101: Instagram develops app for Apple Watch: [at Financial Times] - Instagram, which built a b... http://t.co/LwvehzDEJ1 $AAP…
The Stock Professor
19 Apr 15 05:40:37
Business Bookshelf: Lessons from master strategists in the tech world: http://t.co/vvyGHmERk0 $AAPL $GOOG $PCLN $K
Stock Wire
19 Apr 15 05:32:14
Short Interest Data As Of March 31: Google Inc (GOOGL), Tesla Motors Inc ... $GOOG http://t.co/54xrjzz3YQ
Rosner Stocks
19 Apr 15 05:28:38
$TEVA Financials Updated Sunday, April 19, 2015 07:59:24 AM $GOOG $HAR $VXX $MPC http://t.co/OlyUsqNDCF
Samer Kamal
19 Apr 15 05:26:41
$MSFT steal #Android from $GOOG. Might not build hardware for it but others love to get on board & out of $GOOG grip http://t.co/L2WO2m7R4h
Eric
19 Apr 15 05:21:58
RT @ATTBolsa: Acusación de la UE a $GOOGL $GOOG #Google: http://t.co/3R3UftR1Mk
OM_freebies
19 Apr 15 05:08:06
#OptionsTraining Video: #Payoff #Diagrams http://t.co/nuLmohA3zT $GOOG $GOOGL $TSLS $TQQQ $XLV $XNRG $NKE $DIA http://t.co/Tw6l9cwuo3
stevewalker
19 Apr 15 05:07:48
$GOOG #GOOG Sh #WharmonicS #Trading #Forex #FX #Stocks #Futures #Indicies #Commodities #Gold #Oil QQQ #QQQ $SPY #SPY http://t.co/XsM4E5OYtm
Clayton R.
19 Apr 15 05:04:09
$GOOG http://t.co/zzGEvirsQD The World’s Highest-Paid DJs 2014 http://t.co/gFyFA9NbED
Bradley
19 Apr 15 05:02:08
Catch a winner in LIVE CHAT $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/l9JkTCtpHR http://t.co/t9MdVQMaUv
Stock Hobbit
19 Apr 15 05:01:06
Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/ZffOzka5Ee
Di
19 Apr 15 05:00:02
RT @stockhobbit: Find active and helpful professional daytraders stock traders here http://t.co/ndv5bWOOj4 $GOOG $AAPL $QQQ http://t.co/Phj…
The Stock Professor
19 Apr 15 04:57:47
Instagram develops app for Apple Watch: [at Financial Times] - Instagram, which built a b... http://t.co/LwvehzDEJ1 $AAPL $GOOG $PCLN $K
Fred Fore
19 Apr 15 04:50:32
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/aiAQHyvXG6
Bradley
19 Apr 15 04:35:08
Free Video Tutorial #psychology of #trading http://t.co/th4YrUzta4 $TLT $TNA $QQQ $SPY $GPRO $GOOG $AAPL http://t.co/IxiB7WjGAw
KateInAsia
19 Apr 15 04:31:13
RT @stevedenning: Five Reasons Why #Google + Died.. http://t.co/cShWGRNtqt $GOOG #Tech #stocks #stoos @rstraub46 #CreativeEconomy
StockNewsWires
19 Apr 15 04:25:01
$GOOG: EU's Commissioner presses Antitrust charges against Google: http://t.co/wWBxSko7cu
Theodore Kekstadt
19 Apr 15 04:06:14
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/DSuFFMMNAB
Clayton R.
19 Apr 15 04:04:01
$GOOG http://t.co/zzGEvirsQD Errors About When The Robots Come To Take All Our Jobs http://t.co/lVQYH0WWqI
#SocialMedia NC
19 Apr 15 03:42:09
Google's 'balloon-powered internet for all' is almost ready - Engadget http://t.co/wHB7aten9Z #Google $GOOG $GOOGL http://t.co/ic6bAaRbKh
James DiPlata
19 Apr 15 03:31:54
RT @stockhobbit: Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/1F…
James DiPlata
19 Apr 15 03:31:54
RT @stockhobbit: Find active and helpful professional daytraders stock traders here http://t.co/ndv5bWOOj4 $GOOG $AAPL $QQQ http://t.co/bpr…
Bradley
19 Apr 15 03:30:12
Helpful video for stock options beginners!! http://t.co/8g4lUZPHEF $GOOG $AAPL $GOOGL $AMZN $FB $FEYE $FXCM http://t.co/y8PpCOIQAu
OM_giveaways
19 Apr 15 03:27:07
Learn stock technical analysis and charting. http://t.co/6TAu75F3hy $AAPL $GOOG $JRJC $LIVE $INTC $TWTR http://t.co/XacK4druI4
				
				
  +Follow December 30, 2013 8:30AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.