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How many page views a month does a Web 2.0 company need to get an IPO?
We are in a crazy time right now as far as internet companies go. Just like 1999, they are popping up everywhere, and everyone is doing something 2.0 related. Only difference now, they are all online based applications. Well, what would it take for a Web 2.0 company to hold an initial public offering? Michael Kanellos looked into this with Opus Capital partner Ken Elefant. Ken stated that his firm will not even think about investing in a 2.0 company unless they have one billion or more page views.
So what's the math here? A web 2.0 company needs to pull in at least $5 million/ month to be independent. Ultimately what Ken says is that in order for companies to be viable, their best bet is to get bought out by an established player. For more on Michael's findings check out Cnet.
[image via TechStartups]
Comments
2
Subscribe to commentseasApr 20th 2007 4:01PM
This is just a reminder that the traditional VC model isn't appropriate for all sorts of businesses.
Jeffrey McManusApr 21st 2007 1:50PM
I would not even consider betting on a football team unless they were leading by 56 points in the fourth quarter.