Venture capital: does the pre-IPO valuations of tech firms are overvalued?

SUNDAY, MAY 08, 2011

[Published originally on SUNDAY, MAY 08, 2011]

According to William Quigley, a VC at Clearstone, several actual pre-IPO valuations of tech firms are justified.

You can see the whole presentation there:

http://www.docstoc.com/docs/document-preview.aspx?doc_id=79023772

He pinpoints that even though some valuation in the 80’s or 90’s appeared overvalued at first, with time they were highly undervalued. For instance, the IPO of Microsoft around $600M (or $0.07 per share, Cisco ($0.23), Amazon ($0.44), eBay and Google can all be considered higly undervalued.

He reports that it may be also the case in some extent for the next IPO of Facebook and Zynga.

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Twitter: @InfocomAnalysis