Silicon Alley 2.0

Author:
Updated:
Original:

The New York Times and New York mag both lead the week with return-of-the-dot-com boom stories about MySpace and DailyCandy, respectively. Conclusion: it's different this time. Sort of. Kurt Andersen, in a separate column, interviews former Flatiron Partner Fred Wilson, who explains how:

“It doesn’t seem like really dumb things are getting funded,” Fred says. “You’re largely not seeing Webvans and Kozmos and Urban Box Offices.”

Notes Andersen: "The latter two really dumb companies were financed by Flatiron."
New York mag also examines the much-buzzed-about (inasmuch as an 8-to-9-figure deal that doesn't involve a bulge-bracket investment bank or Carl Icahn can be "much-buzzed about") sale of Daily Candy. Reporter Michael Idov makes the completely inexplicable assertion that it's "impossible" to determine the value of Daily Candy:

It’s nearly impossible to apply the usual valuation formulas to DailyCandy. According to the Wall Street Journal, the company projects revenue of “somewhere less than $20 million” this year. Most successful businesses go on sale valued at least ten times their yearly revenue, so by this standard, DailyCandy should cost $200 million or more.

We're mailing him a copy of Damodaran on Valuation, but in the meantime, we'll stick our finger in the air, just like everyone else: $48 million.**
**That said, we hope it's closer to $100 million, for our own selfish reasons.

Related

RavigaCapital

Silicon Valley Recap: Stache-Lag

We recap "Silicon Valley" now.

HBS Grads Loving Tech Bubble 2.0

Tech is luring young MBAs at levels not seen since you know what.

Juicero

One Year Later, Dumb Silicon Valley Juice Startup Turns Out To Be Even Dumber

In which we learn that Juicero is still somehow something that exists.