Joost has announced a 45M $ fundraise from investment funds including Index, Sequoia, but also from medias such as CBS and Viacom. Joost is valued in a range between 200 / 250 M $ with a standard 20/25% capital takeover in A series. It’s a very large amount, given that the service is in beta phase and in a budding market. Yet it’s a correct valorization which takes a number of parameters into account.
If we take a traditional company such as Coca-Cola, the brand has an important place in the group’s value. As we can see on this diagram, the empty part of the bottle represents the brand which values 60% of Coca-Cola on the stock market, about 70 Billion $ !
It’s the same for Internet companies with strong potential which valorize very lowly on revenues or the Ebitdas, often inexistent. The "Empty" part in the bottle is the brand, but also informal values such as the future explosion of the market, and of course the notoriety of the founders which also yields very high valorization.
AN AMAZING VISUAL PRESENTATION BY MARTY NEUMEIER
Brand Gap
