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Such a valuation, which is being weighed as the company prepares for an investor road show next week to pitch its initial public offering, would be a steep comedown from earlier expectations that an I.P.O. of the Internet darling could value the company as much as $25 billion to $30 billion.
Let us consider a valuation which satisfies a stronger condition than the triangle inequality.
The upgrade "is primarily driven by a valuation which is at a considerable discount to its peers".
"The main difficulty won't be getting people interested, but getting them to agree to a valuation which will inevitably be much lower than what it had been when others got involved".
As with the Facebook study, the LinkedIn report uses the Bebo acqusition to generate a valuation (which I doubt is particularly accurate given the very different natures of the sites).
Beyond a valuation which is nearly double that of Twitter, which has struggled to get to anything close to profitability, the Chinese service has gained widespread attention for having a larger userbase than its U.S. peer and very impressive financials, too.
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A new financing means a bigger valuation, which means they need a much higher price down the road when they do eventually sell.
In November, Playdom raised a massive $43 million at a $260 million valuation, which it is obviously using towards buying companies and talent.
As part of the deal, Foundry Group is also investing another $500,000 in FullContact at a higher valuation, which they are referring to as a Series C round.
And it has a $1 billion valuation, which has been the source of much controversy.
It is proved that the classical Laplace transform is a continuous valuation which is positively GL(n) covariant and logarithmic translation covariant.
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