Are These Charts Worth $8 Million?
Posted on August 26, 2008
Filed Under VC Insanity |
Investors have funded the startup that runs the website whose traffic is displayed in the charts below to the tune of $8 million.
Ask yourself: would you invest $8 million in this startup? Would you be pleased with the results thus far if you had invested $8 million in this startup?
Any reader who can guess the startup behind this website by August 25, 2008 will win a decommissioned Soviet Projektu-613 submarine. Pick up at the Zvezdochka shipyard in Severodvinsk only.
Note: I recognize that traffic statistics from Compete and Alexa are imperfect but they’re reliably trend-indicative.
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8 Responses to “Are These Charts Worth $8 Million?”
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Drama 2.0 spikes the Web 2.0 kool aid by providing critical analyses of Web 2.0, its people, its startups and its impact on the world of media. Other topics are explored when Drama 2.0 has been drinking too much 1975 Dom Perignon. Read more about the Internet's version of Keyser Söze here.
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Zivity! It’s too bad I’m a day late. Always a day late. I really could have used that sub.
Oh wait. Zivity doesn’t even have that many visitors. I stand corrected.
Um, as far as I can tell Kevin is exactly right. Maybe he forgot to set Alexa’s graph to 6 months instead of the default 3.
I wasted my time trying Chacha and Cuil before realising that.
Yeah, my mistake. I found Zivity, wrote my first post, then double checked a different (non-Zivity) chart and wrote my second.
It is Zivity. Sorry.
I’m sorry you guys are a day late and a dollar short but you haven’t answered the questions:
Would you invest $8 million in this startup? Would you be pleased with the results thus far if you had invested $8 million in this startup?
The correct answer is that I wouldn’t care because I’d be looking at profit forecasts.
If you say “look how little traffic they get, they’re not worth the money” you risk allowing Facebook et al to say “well we’ve got loads of traffic, we must be worth billions!” As Web 1.0 taught us, eyeballs are useful for catching photons and virtually useless as a measure of business value.
Sam: you make a valid point, however I think if you’re familiar with Zivity’s business model and run some reasonable conversions in your head, you can figure out what the non-existent profits are. I’ll have more to say about Zivity and how it’s doing soon.
[…] It won $10,000 at TechCrunch 40. And for all of TechCrunch’s shilling for the company, its traffic levels tell you all you need to know (as does the fact that Zivity employees and models appear to be […]