As small companies get valued at such large sums of money, it begs the question, "Are they really worth it?"
Part of it is that money has been cheap and there’s a lot of it sloshing around looking for a home. There’s also the sense that the next wave of computing, built on mobile devices and social software, is going to be bigger than anything that has come before it...
...these are the companies that the “smart money” has decided will be the winners out of an ocean of new startups...
Check out: Fab.com, Snapchat and other relatively tiny companies have been generating sky-high valuations...including:
- SurveyMonkey, which has raised money at a $1.35 valuation and has 150 employees in Portland, Oregon;
- Pinterest, based in San Francisco with 150 employees, which has raised money at a $2.5 billion valuation; and
- Square, a payments processor in San Francisco, which has raised money at a $3.25 billion valuation.
- Evernote, Spotify, and Airbnb.