Soaring Valuations in Consumer Web Companies?

The WSJ has out a timely piece tipping the rapidly rising valuations being seen in private market financings of consumer web companies. Graph and excerpt follows:

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The escalating valuations for consumer Web start-ups are reflected in the secondary market, where investors buy and sell the shares of closely held companies such as social-networking company Facebook Inc. On SecondMarket, which operates an exchange where investors can trade the stocks of closely held start-ups, the share prices of six actively traded private companies—including four consumer Web start-ups—rose an average of 39% between January and August, according to the company

To be fair, the data is mostly anecdotal, and rising secondary market valuations can be a reflection of scarcity of issues as much as anything, but it is all worth noting — especially in light of the current made-in-blogland noisy chatter about angel cartels and the like.

Related posts:

  1. Fun with Pre-Money Valuations
  2. Consumer Product Companies Heart Online Ads
  3. The IPO Trough for VC-Backed Companies
  4. VCs in Consumer Electronics? Nope
  5. Companies Mutate or Die