Comments on: Yelp Raises $15 Million Fourth Round, Rumored Valuation $200 Million http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/ Startup and Technology News Fri, 27 Nov 2009 18:24:54 -0800 hourly 1 By: The Praized Blog » Blog Archive » Why Social Media is Not Just About Merchant Reviews http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2863521 The Praized Blog » Blog Archive » Why Social Media is Not Just About Merchant Reviews Fri, 17 Jul 2009 19:30:46 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2863521 [...] has been extremely successful from a user point of view, revenues are still low in proportion. Articles from 16 months ago mentioned Yelp’s revenues were “rumored to be sub $10 [...] [...] has been extremely successful from a user point of view, revenues are still low in proportion. Articles from 16 months ago mentioned Yelp’s revenues were “rumored to be sub $10 [...]

]]> By: hhotelconsult http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2622573 hhotelconsult Thu, 12 Feb 2009 00:03:46 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2622573 Wow I love this article. I read all the comments time and time again. Wow I love this article. I read all the comments time and time again.

]]> By: Imran http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2616185 Imran Wed, 04 Feb 2009 18:43:21 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2616185 I love Yelp. Yelp is the industry's key player. It is arguable whether they make big money or not but what is obvious is that yelp is a unique and useful product. There are more similar sites coming up like www.2findlocal-houston.com or www.2findlocal-losangeles.com, but Yelp will still stay the leader for quite long. I love Yelp. Yelp is the industry’s key player. It is arguable whether they make big money or not but what is obvious is that yelp is a unique and useful product. There are more similar sites coming up like http://www.2fin...cal-houston.com or http://www.2fin...-losangeles.com, but Yelp will still stay the leader for quite long.

]]> By: Kevin http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2615936 Kevin Wed, 04 Feb 2009 13:46:29 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2615936 Yelp and YellowBot are good sites, but it seems like more and more similar sites keep emerging like http://www.hellolocal.com, http://www.2findlocal-losangeles.com and the like. The competition is becoming really tough. Yelp and YellowBot are good sites, but it seems like more and more similar sites keep emerging like http://www.hellolocal.com, http://www.2fin...-losangeles.com and the like. The competition is becoming really tough.

]]> By: Yelp valuation too high? Oh please… | artificial ignorance http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2583521 Yelp valuation too high? Oh please… | artificial ignorance Sat, 03 Jan 2009 03:40:48 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2583521 [...] First, congratulations to the Yelp team on raising another round. [...] [...] First, congratulations to the Yelp team on raising another round. [...]

]]> By: Yelp! needs Help? : Marty’s Mind http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2540885 Yelp! needs Help? : Marty’s Mind Thu, 20 Nov 2008 09:22:23 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2540885 [...] days touted how well they were doing. This growth was probably a big factor in Yelp’s rumored $200 million valuation on its fourth round in February. A lot of this growth has been fueled by the excellent SEO that [...] [...] days touted how well they were doing. This growth was probably a big factor in Yelp’s rumored $200 million valuation on its fourth round in February. A lot of this growth has been fueled by the excellent SEO that [...]

]]> By: Congrats to Yelp for Raising $15 Million | Personal Insights on Web 2.0, Blogging, and Business http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2463037 Congrats to Yelp for Raising $15 Million | Personal Insights on Web 2.0, Blogging, and Business Tue, 09 Sep 2008 04:56:22 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2463037 [...] Sorry for another short post, but I wanted to say congrats to the team at Yelp for raising another $15 million in funding! [...] [...] Sorry for another short post, but I wanted to say congrats to the team at Yelp for raising another $15 million in funding! [...]

]]> By: Will Yahoo Propose to Yelp? — eClick Performance Blog http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2238457 Will Yahoo Propose to Yelp? — eClick Performance Blog Wed, 30 Apr 2008 17:19:13 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2238457 [...] Yahoo and Yelp are feeling one another out for a possible acquisition. TechCrunch reported in February that Yelp had secured $15 million in financing in it’s fourth round, with a rumored valuation [...] [...] Yahoo and Yelp are feeling one another out for a possible acquisition. TechCrunch reported in February that Yelp had secured $15 million in financing in it’s fourth round, with a rumored valuation [...]

]]> By: Chris http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2016233 Chris Wed, 05 Mar 2008 03:18:48 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2016233 I find that the yelp reviews are indeed all over the map. What is more interesting - at least for me, is putting out a discussion posting saying something like "Dallas Yelper coming to San Jose, needs ideas where to go for local food..." and watch the discussion thread. That gets you through a lot of the review noise and because people who post on these kinds of sites seem to want to express themselves, I get some places I would otherwise never have thought of. Then it is time for some research. As far as revenue, earnings, etc are concerned, I agree it is really hard to see how these folks will make much money/ Must be holding out for the mythical and mystical "event". I find that the yelp reviews are indeed all over the map. What is more interesting – at least for me, is putting out a discussion posting saying something like “Dallas Yelper coming to San Jose, needs ideas where to go for local food…” and watch the discussion thread. That gets you through a lot of the review noise and because people who post on these kinds of sites seem to want to express themselves, I get some places I would otherwise never have thought of. Then it is time for some research.

As far as revenue, earnings, etc are concerned, I agree it is really hard to see how these folks will make much money/ Must be holding out for the mythical and mystical “event”.

]]> By: » The Valuation Math Scares Me, Too http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2014880 » The Valuation Math Scares Me, Too Mon, 03 Mar 2008 19:01:13 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2014880 [...] Techcrunch’s coverage of Yelp’s latest and fourth—yes fourth—round of financing lured a tone of skepticism from nearly all who commented on the post. After two years and $31mm invested, the still unprofitable Yelp! is valued at $200mm. Come again? A figure twenty times the undisclosed-but-rumored-to-be sub $10mm annual revenue mark. [...] [...] Techcrunch’s coverage of Yelp’s latest and fourth—yes fourth—round of financing lured a tone of skepticism from nearly all who commented on the post. After two years and $31mm invested, the still unprofitable Yelp! is valued at $200mm. Come again? A figure twenty times the undisclosed-but-rumored-to-be sub $10mm annual revenue mark. [...]

]]> By: Trace Johnson http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2012378 Trace Johnson Sat, 01 Mar 2008 03:24:44 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2012378 Mike - I love TechCrunch and respect the way you handle yourself on tv. I blogged the following questions at the end of some comments about your back & forth with Glen Kellman at http://mpayy.blogspot.com/2008/02/wheres-beef.html My questions respectfully are as follows: * What is the scenario that drives these valuations, and how frequently is that "Winner Take All"? * What is the exit for these companies, and how frequently is that assumed to be a strategic buyer in the form of Google, Yahoo or Microsoft? * Online advertising rose 25% last year, and is expected to continue to rise. However, there is clear evidence that click-through rates are falling to an industry average of about 0.25%. Search engine marketing text links are higher, but are they concentrated enough among the highly atomized online publishing community to run a business based on this revenue stream? * What effect does the "Bandwagon Effect" play in many of these investments in crowded sectors? Money is also flowing into the Open Social/Data Portability sector with a number of players, most recently Gmail-creator Paul Bucheit's FriendFeed. Similarly, as I discussed here, survey participants expected Clean Tech as the sector most likely to receive investments and be over-valued in 2008. Take care - -- Trace Mike -

I love TechCrunch and respect the way you handle yourself on tv. I blogged the following questions at the end of some comments about your back & forth with Glen Kellman at http://mpayy.bl...heres-beef.html

My questions respectfully are as follows:

* What is the scenario that drives these valuations, and how frequently is that “Winner Take All”?
* What is the exit for these companies, and how frequently is that assumed to be a strategic buyer in the form of Google, Yahoo or Microsoft?
* Online advertising rose 25% last year, and is expected to continue to rise. However, there is clear evidence that click-through rates are falling to an industry average of about 0.25%. Search engine marketing text links are higher, but are they concentrated enough among the highly atomized online publishing community to run a business based on this revenue stream?
* What effect does the “Bandwagon Effect” play in many of these investments in crowded sectors? Money is also flowing into the Open Social/Data Portability sector with a number of players, most recently Gmail-creator Paul Bucheit’s FriendFeed. Similarly, as I discussed here, survey participants expected Clean Tech as the sector most likely to receive investments and be over-valued in 2008.

Take care -

–
Trace

]]> By: Hal Rucker http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2011249 Hal Rucker Fri, 29 Feb 2008 05:44:07 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2011249 Thanks for the comment about Smalltown. FYI: One of our patent applications is for the methodology we developed to enable our site to be indexed and optimized for search. Smalltown Webcards show up in Google, Yahoo and other search results just like a webpage does. Do a search at Google for "Carol Leong Electrolysis" and her Webcard is the top result. (At least as of 2/28/08) Another example is Ana Furniture. Their Webcard shows up higher on Google than their website, and they're not even a customer of ours yet. - Hal Thanks for the comment about Smalltown. FYI: One of our patent applications is for the methodology we developed to enable our site to be indexed and optimized for search. Smalltown Webcards show up in Google, Yahoo and other search results just like a webpage does.

Do a search at Google for “Carol Leong Electrolysis” and her Webcard is the top result. (At least as of 2/28/08)

Another example is Ana Furniture. Their Webcard shows up higher on Google than their website, and they’re not even a customer of ours yet.

- Hal

]]> By: James Curran http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2009957 James Curran Thu, 28 Feb 2008 15:57:52 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2009957 Mariano - That's a good point on the SEO of smalltown. However, since it's so targeted to small towns, would it get the volume it would need to appear in results anyway? Mariano –

That’s a good point on the SEO of smalltown. However, since it’s so targeted to small towns, would it get the volume it would need to appear in results anyway?

]]> By: marianosoler http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2009553 marianosoler Thu, 28 Feb 2008 13:16:32 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2009553 hal, pretty nice local approach with SmallTown website, incredible look and feel, however, the dude that developed the interfase did not think for a second about Seo!, ugly from that standpoint !, mariano. hal, pretty nice local approach with SmallTown website, incredible look and feel, however, the dude that developed the interfase did not think for a second about Seo!, ugly from that standpoint !,

mariano.

]]> By: Yelp, Local Online Leader, worth $200M? at Ghost of Midnight http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2009295 Yelp, Local Online Leader, worth $200M? at Ghost of Midnight Thu, 28 Feb 2008 05:52:24 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2009295 [...] TechCrunch reported this week… Yelp, the popular local review site, will soon announce a new $15 million dollar round of financing led by DAG Ventures. The valuation is rumored to be in the $200 million range. Yelp says that they will be using the money to expand geographically, add onto their sales team, and establish an office in NYC (they are based in San Francisco). This is Yelp’s fourth round of funding since their founding in 2004. Yelp is also boasting some impressive stats: 8.3 million uniques in the past 30 days and over 2.3 million review. [...] [...] TechCrunch reported this week… Yelp, the popular local review site, will soon announce a new $15 million dollar round of financing led by DAG Ventures. The valuation is rumored to be in the $200 million range. Yelp says that they will be using the money to expand geographically, add onto their sales team, and establish an office in NYC (they are based in San Francisco). This is Yelp’s fourth round of funding since their founding in 2004. Yelp is also boasting some impressive stats: 8.3 million uniques in the past 30 days and over 2.3 million review. [...]

]]> By: ONLINE SERVICES/INTERACTIVE MEDIA « Daily Marauder http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2009124 ONLINE SERVICES/INTERACTIVE MEDIA « Daily Marauder Thu, 28 Feb 2008 02:44:08 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2009124 [...] based in San Francisco). This is Yelp’s fourth round of funding since their founding in 2004. (http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million [...] [...] based in San Francisco). This is Yelp’s fourth round of funding since their founding in 2004. (http://www.tech...ion-200-million [...]

]]> By: Hal Rucker http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2008883 Hal Rucker Wed, 27 Feb 2008 22:19:00 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008883 http://www.samlltown.com is a typo. Try www.smalltown.com http://www.samlltown.com is a typo.

Try http://www.smalltown.com

]]> By: Nick H. http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2008838 Nick H. Wed, 27 Feb 2008 21:36:04 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008838 Yelp is one of the standout websites of the last couple years for me. I have used 100s of new web services recently, but Yelp is the only one I have actually become devoted to. It truly helps locate the best spots in many cities - the only way you could do that previously was by asking lots of locals. The revenue issue is a big challenge, but the fact that they are a huge part of the decision making process for individuals seeking places to eat and shop, means they have a lot of value. Yelp is one of the standout websites of the last couple years for me. I have used 100s of new web services recently, but Yelp is the only one I have actually become devoted to. It truly helps locate the best spots in many cities – the only way you could do that previously was by asking lots of locals. The revenue issue is a big challenge, but the fact that they are a huge part of the decision making process for individuals seeking places to eat and shop, means they have a lot of value.

]]> By: Amused http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2008797 Amused Wed, 27 Feb 2008 20:57:50 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008797 Wow. Do you think any of the former InsiderPages folks are depressed by this? Post #36 is right. There definitely is some real money to go after -- as a chunk of the $15B in print yellow pages moves online. But serving small businesses is difficult work. And it's not clear that Yelp has an appetite to tackle this -- let alone already have mastered it. Folks who are trying to build a business would test out a model(s) in several cities. And then once they validated one, would replicate it elsewhere. Without a profitable model in your early markets, what exactly will a salesforce and more office space do? Wait a minute. Did I say build a business? I'm missing the point, aren't I? Time to join the party. Where's Stoppelman? Jeremy, we're running low on wine. Wow. Do you think any of the former InsiderPages folks are depressed by this?

Post #36 is right. There definitely is some real money to go after — as a chunk of the $15B in print yellow pages moves online.

But serving small businesses is difficult work. And it’s not clear that Yelp has an appetite to tackle this — let alone already have mastered it.

Folks who are trying to build a business would test out a model(s) in several cities. And then once they validated one, would replicate it elsewhere. Without a profitable model in your early markets, what exactly will a salesforce and more office space do?

Wait a minute. Did I say build a business? I’m missing the point, aren’t I? Time to join the party. Where’s Stoppelman? Jeremy, we’re running low on wine.

]]> By: Neo http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2008748 Neo Wed, 27 Feb 2008 20:03:35 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008748 @ Ask Bjorn Hansen: OK, even if they're "relative" numbers, how can Yelp claim *100%* greater traction than these third-party indicators?? A factor of 2x?? No way. @ Ask Bjorn Hansen:

OK, even if they’re “relative” numbers, how can Yelp claim *100%* greater traction than these third-party indicators?? A factor of 2x?? No way.

]]> By: Ask Bjørn Hansen http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2008735 Ask Bjørn Hansen Wed, 27 Feb 2008 19:55:10 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008735 Eh - those comparisons (#48) were for yellowbot.com. :-) (as the link). Eh – those comparisons (#48) were for yellowbot.com. :-) (as the link).

]]> By: Ask Bjørn Hansen http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2008733 Ask Bjørn Hansen Wed, 27 Feb 2008 19:54:23 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008733 Neo, Quantcast, Compete and the others really are only good for trends and relative numbers - not for absolute numbers. For comparison (which of course you can't verify either), compete is showing less than a quarter of the UU analytics says and quantcast less than half. The trends they display are about right though! :-) - ask Neo,

Quantcast, Compete and the others really are only good for trends and relative numbers – not for absolute numbers. For comparison (which of course you can’t verify either), compete is showing less than a quarter of the UU analytics says and quantcast less than half.

The trends they display are about right though! :-)

– ask

]]> By: Neo http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-2/#comment-2008718 Neo Wed, 27 Feb 2008 19:38:08 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008718 Slight correction, Compete's 1/08 estimate was 3.5m, a little less... Slight correction, Compete’s 1/08 estimate was 3.5m, a little less…

]]> By: Neo http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-1/#comment-2008714 Neo Wed, 27 Feb 2008 19:36:06 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008714 How does Yelp get away with claiming they have "8.3m uniques in the past 30 days" when Compete and Quantcast both indicate *HALF* that at most?! Compete's estimate for 12/07 = 4m; Quantcast's estimate for 12/07 = 3.2m. Seems they're lying here somewhere. How does Yelp get away with claiming they have “8.3m uniques in the past 30 days” when Compete and Quantcast both indicate *HALF* that at most?! Compete’s estimate for 12/07 = 4m; Quantcast’s estimate for 12/07 = 3.2m. Seems they’re lying here somewhere.

]]> By: The Washington Post sure does like Yelp « Think Locally http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/comment-page-1/#comment-2008712 The Washington Post sure does like Yelp « Think Locally Wed, 27 Feb 2008 19:34:01 +0000 http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/#comment-2008712 [...] TechCrunch tosses out a valuation of $200 million on revenue of less than $10 million, and notes (correctly) that Yelp has been on a traffic tear lately.  Still not profitable, says the Post. [...] [...] TechCrunch tosses out a valuation of $200 million on revenue of less than $10 million, and notes (correctly) that Yelp has been on a traffic tear lately.  Still not profitable, says the Post. [...]

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