For the moment, the valuations we have for private companies like Facebook, Twitter, and LinkedIn are based mostly on what we know from venture capital investments.
SharesPost, however, is a company that lets owners of shares in private companies sell them to prospective buyers, and it has just released an index detailing valuations of some of the most prominent companies in the social media space.
Here’s what they report:
Facebook: $11.5 billion
Zynga: $2.6 billion
Twitter: $1.4 billion
LinkedIn: $1.3 billion
Linden Labs (Second Life): $383 million
How close are these valuations to reality? Facebook’s most recent investment from DST valued the company at north of $10 billion, while Twitter was valued at roughly $1 billion when it took $100 million in funding back in September. In other words likely not too far off.
SharePost also says that it has been involved “in the negotiations of more than $229MM worth of transactions,” so there is enough activity in its marketplace for it to make rough estimates of valuation. Its estimates also take into account venture capital investments and research reports from equity analysts.
What do you think of the valuations? Let us know in the comments!