Are Snapchat, Uber and Pinterest’s sky-high valuations too
high?
Snapchat, Uber and Pinterest are being valued at eye-popping
levels as the potential of mobile-first companies begins to be realized while
still promising a lot more to come.
Snapchat is seeking up to a $19 billion value in financing,
Uber is being valued at $40 billion and continues to expand its latest funding
round, which is up to $2.8 billion, while Pinterest is seeking an $11 billion
valuation in new funding. These numbers may seem surprising, given that these
are relatively young companies that are still in growth mode, but the figures
reflect the confidence that executives and investors have in the potential of
mobile to unlock new opportunities.
“Make no mistake, the valuations of these companies is
certainly high, but the history of tech start-ups in the mobile space is very
short, and based on what we’ve seen over the past 5 years, we should start to
be less surprised,” said Ken Wisnefski, CEO of WebiMax, Camden, NJ.
“Yes, mobile
utilization still has a ton of space to grow and there is still plenty of
content to be moved over and innovation that we’ve yet to encounter,” he said.
“While I see a disparity between companies wisely using funds and those wasting
resources, as long as huge valuations are given to companies with no revenue
and huge losses, more start-ups are likely to follow the user growth/0 revenue
model.”
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