Above the Crowd

Archive for the ‘Facebook’ Category

Why Facebook Clearly Belongs in the 10X Revenue Club

February 1, 2012:

Attached are my thoughts on the Facebook S-1 along with some quick stabs at valuation.  Brief disclosure, Benchmark Capital has a minority position in Facebook as a result of the acquisition of FriendFeed, a company that was incubated in our offices. I thought it would be useful to look at Facebook using the scorecard from our May 24 blog post, “ All Revenue is Not Created Equal, the Keys to the 10X Revenue Club .” For those that want to save time, the key point of this piece is that there is a broad disparity of Price/Revenue multiples for global Internet stocks, and that only a very small fraction of these companies achieve a ...

Read More

You Don’t Have to Tweet to Twitter

November 15, 2011:

Frequent comparisons to Facebook leave many confused about the true value of Twitter. [Follow Me on Twitter] “In a brand new direction A change of perception On a brand new trajection” – UB40 [Disclosure: Benchmark Capital is a major investor in Twitter, and my partner Peter Fenton sits on the Twitter BOD.] Twitter is having a remarkable year. Active users have soared to over 100 million per month, with daily actives now above 50 million. Tweets per day are over 250 million. Most top actors, athletes, and artists are all active on Twitter. Every news and sports program proudly advertises its Twitter account handle. No one would consider ...

Read More