The SAI 50+: World's Most Valuable Internet Startups

 

Welcome to the SAI 50+: The Most Valuable Internet Startups

Facebook tops our list again, with a valuation of $6.5 billion.  Facebook has grown at a tremendous clip this year, but digital media multiples have come down so Facebook’s value has stayed the same

Rounding out the top five: Wikipedia, which we think could be worth $5 billion if it tried to make money; Betfair, the online gambling site; NewEgg, the e-commerce site that recently filed to go public; and Craigslist, which we think could be worth $3 billion if it tried to generate revenue in earnest.

Click here to scroll through the SAI 50+ in order of valuation →
About The List

Last year, we created the SAI 25, in which we valued and ranked some of the world’s leading private digital companies.

This year we expanded our search and analysis. We found a lot more companies that are earning a lot of money or growing their audience rapidly. The result is this year’s new and improved “SAI 50+” — 60 of the world’s most valuable private digital startups.

Notable companies not included on last year’s list include NewEgg and GoDaddy, whose domain registration and hosting business is generating about $700 million in revenue per year.

What’s New

A lot has happened in the past year: The economy took a huge hit, venture funding dried up, and online advertising plummeted.  E-commerce and virtual goods sales, meanwhile, held up relatively well.

As a result, there are some changes to last year’s rankings. A new company broke the top five, two new companies broke the top 10, and 11 companies fell out of the top 25 altogether. Click here to see a summary of the top “Movers and Shakers.”

Methodology

We used the same valuation methodology as we did last year, which you can read about in detail here. As with last year, our valuations are only as good as the information we have, so please feel free to email us more info in confidence at [email protected].

The SAI 50+ Top 10:

1. Facebook

2. Wikipedia

3. Betfair

4. NewEgg

5. Craigslist

6. Mozilla

7. Yandex

8. Webkinz (aka Ganz)

9. GoDaddy

10. Demand Media

See all in order →

Complete Coverage

In A-Z Order

The Complete List 1-60

Who’s New This Year?

The Biggest Movers 

 

Acknowledgments

We want to thank the hundreds of companies, investors, and executives who have taken time over the past few months to submit nominations and share information with us. We thank our teammate Preethi Dumpala for performing most of the background research. In addition, we thank our generous sponsor British Airways for making the project possible. The financial analysis was performed by Rory Maher.

Click here to scroll through the SAI 50+ in order of valuation →

1. Facebook

Estimated Value: $6.5 billion

Business: The biggest social networking site in the world, more than 300 million users. Raised more than $400 million in funding since 2008.

Location: Palo Alto, CA

More Info: About Facebook

CEO: Mark Zuckerberg

Investors: Microsoft ($246M), Hong Kong billionaire Li Ka-Shing ($60M), Greylock Partners and Meritech Capital Partners ($25M), Accel Partners ($12.8M), PayPal co-founder Peter Thiel ($500,000), European Founders Fund ($15m), Digital Sky Technologies ($200m) and TriplePoint Capital ($100m)

Analysis: Facebook still has its share of sceptics, but even they are finding it hard to ignore the company's impressive growth and now meaningful revenue. Company insiders estimate it will take in about $550 million in revenue this year, up nearly 100% from estimated 2008 revenue. The company has had more success selling ads than other social networks due to its size, brand, and ability to develop products like engagement ads that interact with its audience. However, Facebook has yet to develop a 'killer app' that takes it to Google-like revenue levels. It tried unsuccessfully with its Beacon ad product, but that was quickly killed due to privacy concerns.

Last year we gave the company a 25-times revenue multiple due to its incredible growth, low cost of goods, and dominance in the social networking industry. We still believe Facebook is a great business for these reasons. However, it's 2009 and multiples have come down significantly for everyone, even the best companies. As a result, we apply a 12-times multiple to $550 million est. 2009 revenue to estimate a $6.5 billion valuation.

4. NewEgg

Estimated Value: $3.2 billion

Business: Tech E-Commerce

Location: City of Industry, CA

More Info: About NewEgg

CEO: Tally Liu

Investors: Insight Venture Partners, Tekhill US

Analysis: Online electronics retailer NewEgg generated $2.1 billion in revenue last year, according to an SEC filing released when it announced an IPO in September. Sales were flat the first half of the year, and we assume they will remain flat for the remainder of the year, leading to a $2.1 billion revenue estimate for 2009.

The company's e-commerce model likely generates single-digit-margins. As a result, we apply a 1.5-times multiple to 2009 revenue, resulting in a $3.2 billion valuation.

5. Craigslist

Estimated Value: $3 Billion

Business: Classified ads

Location: San Francisco, California

More Info: About Craigslist

CEO: Jim Buckmaster

Investors: eBay acquired 25% of equity in 2004 for $30+ million

Analysis: One of many newspaper killers, Craigslist famously charges for only a small percentage of their ads (job and real-estate ads in about 15 cities). We think if the company went after real revenue by charging for a lot more of its ads, it could generate at least $1 billion in revenue.

However, there are public estimates of the company's actual revenue. AIM Group puts it at about $100 million, but we think it's closer to around $150 million this year. As a result, rather than try to forecast potential revenue we give the company a healthy 20-times multiple on its actual revenue -- given its significant untapped revenue and high profit margins. (Simple text likely doesn't chew up a lot of bandwidth.) This brings us to a $3 billion valuation. Craigslist is #5 on this year's list, down from #3 in 2008.

6. Mozilla Corp.

Estimated Value: $2.7 billion

Business: Offers open source browser Firefox

Location: Mountain View, California

More Info: About Mozilla

CEO: John Lilly

Investors: N/A

Analysis: Mozilla is another company that isn't concerned with squeezing as much profit from its business as it can. Still, just from its Google licensing deal alone -- Google pays the company to be its default search provider -- we estimate it will generate about $180 million in revenue this year.

Last year we gave the company a 25-times revenue multiple due to revenue, growth rate, margin, and long-term potential. However, there are real concerns about how long Google will continue with its deal given the launch of its own browser, Chrome. As a result, we've taken our revenue multiple down to 15-times, resulting in a $2.7 billion valuation.

7. Yandex

Estimated Value: $2.6 billion

Business: Russia's largest search engine and internet company

Location: Moscow, Russia

More Info: About Yandex

CEO: Arkady Volozh

Investors: Baring Vostok Capital Partners, ru-Net Holdings, Tiger Technology Global Management

Analysis: Yandex is Russia's Google. Although its revenue pales in comparison to Google's, it is experiencing impressive growth: It reported $300 million in 2008 revenue, up almost 100% for the second straight year. We estimate 20% revenue growth in 2009 to $360 million and similar net income margins as in the past, resulting in $85.2 million in net income.

The company continues to grow rapidly, even during the recent downturn, and Russia represents a sizable search opportunity for those that emerge as leaders in the space. As a result, we apply a 30-times multiple to net income to derive a $2.6 billion valuation.

8. Webkinz (aka Ganz)

Estimated Value: $1.4 billion

Business: Ganz sells stuffed animals that come with a secret code. The code can be used to create a virtual version of the stuffed toy on Webkinz.com.

Location: Cheektowaga, New York

More Info: About Webkinz

CEO: Howard Ganz

Investors: N/A

Analysis: Webkinz is a 58-year-old gift company whose primary product is plush toys. The company drives a lot of its sales through its virtual world, which reaches over 5 million consumers a month. The company will sell about $700 million in toys and other gift products this year -- down about 10%, according to our estimates.

There is a lot of value in a virtual world that reaches 5 million consumers a month to help drive sales. (Nevermind untapped revenue from advertising and virtual goods.) However, the company's business is likely low-margin and does have a significant brick-and-mortar retail component, which leads us to a 2-times revenue multiple and $1.4 billion valuation.

9. GoDaddy

Estimated Value: $1.4 billion

Business: Domain Registration

Location: Arizona

More Info: About GoDaddy

CEO: Bob Parsons

Investors: Self-Funded

Analysis: Sources tell us GoDaddy will generate $700 million this year from its domain registration business. Apparently the company's heavy spending on TV ad campaigns with smoking babes is helping it become the leading domain registration brand.

We think there is more room to grow in the domain registration space, especially as it becomes easier for people to build Web sites, but it will be difficult for the company to achieve the kind of rapid growth it saw since its 1997 launch. We apply a 2-times revenue multiple, resulting in a $1.4 billion valuation.

10. Demand Media

Estimated Value: $1.3 billion

Business: Social network and social networking products

Location: Santa Monica, CA

More Info: About Demand Media

CEO: Richard Rosenblatt

Investors: 3i Group, Generation Partners, Goldman Sachs, Oak Investment Partners
Spectrum Equity Investors

Analysis: Demand Media has flown under the radar from a number of years despite generating some real revenue. This is even more surprising since one of its founders is Richard Rosenblatt, the former CEO of Myspace parent company Intermix Media (the other founder is investor Shawn Colo).

The company has raised a ton of capital and has bought a lot of domains since its launch in 2006, eHow and Pluck.com being the most well known. It applies social-networking platforms to the sites it buys then generates a lot of content from users, curating a final 'pro-am' offering.

Of course, some speculate the company makes most of its money from parked domains, but cash made from that business is still green, right? The bigger and more likely risk, in our opinion, is that this company is essentially a roll-up that has used the cash it raised to overpay for domain acquisitions.

Estimates point to $250 million in 2009 revenue. We apply a 5-times multiple to come up with a $1.3 billion valuation.

Update: We've confirmed with the company that about 10% of its revenue comes from parked domains (despite speculation, this would not qualify as 'most'). In addition, the latest acquisition made about 18 months ago so growth since then would be organic, though only time will tell if the company overpaid for its acquisitions.

11. QuinStreet

Estimated Value: $1.3 billion

Business: Online Marketing Agency

Location: Foster City, CA

More Info: About QuinStreet

CEO: Doug Valenti

Investors: Sutter Hill Ventures, Split Rock Partners, GGV Capital, Matrix Partners.

Analysis: QuinStreet is an online marketing agency with estimated revenue of about $250 million, according to sources close to the company. The company's performance-based model has fared well in the downturn while display/branding networks have struggled. QuinStreet also operates some of the Web sites in its network, recently buying the Internet.com division of WebMediaBrands.

Similar to other digital agencies we apply a 5-times multiple to revenue to come up with a $1.3 billion valuation.

12. Zynga

Estimated Value: $1.2 billion

Business: Social Gaming

Location: San Francisco, CA

More Info: About Zynga

CEO: Mark Pincus

Investors: Avalon Ventures, Clarium Capital, Foundry Group, Pilot Group, Union Square Ventures, Reid Hoffman, Peter Thiel, Bob Pittman, Andy Russell, Brad Feld, Kleiner Perkins Caufield & Byers, Union Square Ventures, Foundry Group, Avalon Ventures, Institutional Venture Partners

Analysis: Zynga is another new entrant to the list, but unlike many of the other newbies, Zynga is only two years old. The company has established itself as a leader in the social games business, making an estimated $150 million in revenue this year from a combination of ads and virtual goods.

We are bullish on the social gaming market since it doesn't require heavy development costs like traditional games. In addition, many companies like Zynga live primarily on social networks where people are spending an increasing amount of time. Finally the virtual goods model is a high-margin business that is just getting off the ground in the US.

We apply an 8-times multiple to 2009 revenue to come to a $1.2 billion valuation.

13. QlikTech

Estimated Value: $1.2 billion

Business: QlikTech makes business intelligence software that gives companies quick access to different data with a dashboard-style interface.

Location: Radnor, PA

More Info: About Qliktech

CEO: Lars Bjork

Investors: Accel Partners, Jerusalem Venture Partners, Industrifonden, Sundet Investment

Analysis: Qliktech's aggregation and analysis software for businesses continues to grow its client base, at about 11,000 currently. We estimate $120 million in revenue this year, up from $85 million last year.

Data analytics is becoming an increasingly important part of Web businesses and Qliktech's real-time dashboard is easy to use and download. We think there is plenty of room left for growth at this company, which has global reach.

Given growth, high-margins, and scalability, we apply a 10-times multiple to revenue to come up with a $1.2 billion valuation.

15. Twitter

Estimated Value: $1 billion

Business: Messaging, 'micro-blogging' service

Location: San Francisco, CA

More Info: About Twitter

CEO: Evan Williams

Investors: Charles River Ventures, Union Square Ventures, Marc Andreessen, Dick Costolo
Naval Ravikant, Ron Conway, Chris Sacca, Bezos Expeditions, Spark Capital, Digital Garage, Kevin Rose, Tim Ferriss, Benchmark Capital, Institutional Venture Partners, Insight Venture Partners, T. Rowe Price, Morgan Stanley

Analysis: Twitter was again the 'it' startup of 2009, after taking the same title in 2008. Some saying it could become the new email while others wonder if it will ever make any money. We believe that there is money to be made with Twitter, but unfortunately don't have any revenue or financial metrics to base our valuation on.

Instead we use the most recent fundraising round valuation of $1 billion to value the company.

Our best guess is that Twitter will ultimately make money from ad revenue and some kind of premium account model (whether that be consumer or business). As we wrote recently, the company has already established that there is revenue to be made selling data about its Tweets as well. So, given its tremendous growth and the ecosystem that is being built around its platform -- making it harder and harder for any new competitors to steal users -- we think $1 billion is a reasonable valuation.

16. Oversee.net

Estimated Value: $1 billion

Business: Domain Parking/Lead-Gen

Location: Los Angeles, CA

More Info: About Oversee.net

CEO: Jeff Kupietzky

Investors: Self-Funded

Analysis: Oversee.net is a domain parking and lead generation company founded in 2001 by 21-year-olds Lawrence Ng and Fred Hsu. The company has not taken any outside funding.

The company is on track to earn $200 million in revenue this year, as domain parking/lead-gen appears to have held up well relative to display advertising along with other PPC ad categories.

We apply a 5-times multiple to revenue, resulting in a $1 billion valuation.

17. Oanda

Estimated Value: $900 million

Business: Currency market site where users can trade currencies and get real-time quotes on exchange rates.

Location: Toronto, Canada (offices in New York, Toronto, and Zurich)

More Info: About Oanda

CEO: Michael Stumm

Investors: Index Ventures, Cascade Investment, Legg Mason, New Enterprise Associates, T. Rowe Price, New Enterprise Associates

Analysis: With little public information available, it's difficult to estimate Oanda's revenue. However, we know that it did about $60 million in revenue last year and its market-making business model generates impressive operating profit margins in the 70%-range.

We choose to be conservative given the market fears the past year and assume revenue was flat in 2009. Given the company's growth and high margins we maintain a 15-times revenue multiple this year, resulting in a $900 million valuation.

20. Kayak

Estimated Value: $800 million

Business: Travel search engine

Location: Norwalk, Connecticut

More Info: About Kayak

CEO: Steve Hafner

Investors: Accel Partners, General Catalyst Partners, GoldHill Capital
Lehman Brothers, Norwest Venture Partners, Oak Investment Partners, Sequoia Capital, Trident Capital, SVB Financial Group, AOL

Analysis: Kayak's model, where it charges travel providers per click referral, is a high-margin business. The company saw traffic grow nicely in 2009, but given the economy, we believe some of this was likely window-shopping for good deals. We think the increased traffic coupled with a decrease in overall travel spending led to flat revenue growth to $100 million this year, the same as in 2008.

We've taken our multiple down to 8-times this year from 10-times last year due to overall multiple declines in the Internet industry, resulting in a $800 million valuation.

22. AdKnowledge

Estimated Value: $750 million

Business: Ad Network

Location: Kansas City, MO

More Info: About AdKnowledge

CEO: Scott Lynn

Investors: Technology Crossover Ventures

Analysis: AdKnowledge's multi-platform ad network is expected to generate about $250 million in revenue this year after just five years in operation.

The jury is out for how well ad networks will perform in the future given the growth of bidding exchanges, which threaten the middle men, and a growing perception among publishers that networks undervalue online ad inventory. Still, we believe that ultimately there will be room for the strongest networks.

Given strong growth but questions about the industry, we apply a 3-times multiple to revenue, resulting in a $750 million valuation.

23. Hulu

Estimated Value: $750 million

Business: Professional online video service that offers TV shows and movies.

Location: Los Angeles, CA

More Info: About Hulu

CEO: Jason Kilar

Investors: Providence Equity Partners, The Walt Disney Company and NBC Universal, News Corp.

Analysis: Hulu had its share of sceptics when it launched, most believing few would want to watch full-length TV shows on the Internet. However, following a large ad campaign around last year's Super Bowl, Hulu saw its users more than double by the end of the TV season before slipping somewhat during the summer (when re-runs rule the air).

We think the company's professional online show model is a winner as advertisers have clearly voted in favour of professional content over user-generated. However, we are concerned about the company's likely low margins (it pays a lot for the TV shows it airs) and competitive threat from the cable industry's planned 'TV Everywhere' service.

2009 revenue estimates for Hulu range from $120 million to $200 million. We believe it will be closer to $150 million and apply a 5-times multiple (given the low margin and competitive concerns discussed above) to come up with a $750 million valuation.

24. eHarmony

Estimated Value: $700 million

Business: Online Dating

Location: Pasadena, CA

More Info: About eHarmony

CEO: Greg Waldorf

Investors: Fayez Sarofim & Co., Technology Crossover Ventures, Sequoia Capital.

Analysis: Believe it or not, people don't just use the Internet for seedy hookups. eHarmony, the place where online daters go for 'serious relationships,' has been pitching its site agressively on TV ad campaigns, and the promotion appears to be paying off. We estimate the company will generate about $100 million in revenue this year off of its subscription-based model.

We believe online dating will continue to experience strong growth, especially those sites with strong brands like eHarmony. The high churn rates characteristic of online dating sites causes us to take a small haircut to our multiple though. We apply a 7-times multiple to revenue, resulting in a $700 million valuation.

25. Ozon

Estimated value: $600 million

Business: An Amazon-esque online store that sells Russian books, movies, music and software.

Location: Moscow, Russia

More info: About Ozon

CEO: Bernard Lukey

Investors: Index Ventures, Cisco Systems, Holtzbrinch Ventures, Baring Vostok Capital Ventures

Analysis: Russia's leading e-commerce site Ozon continues to achieve strong revenue growth. We estimate it grew revenue about 40% to $125 million this year.

The company has a similar model to Amazon and is positioned well as Russia's e-commerce industry is in an early stage of high growth.

We give the company a higher multiple than most low-margin e-commerce companies given its above-average growth rates. With a 5-times multiple we derive a $600-million-plus valuation.

26. Ning

Estimated Value: $500 million

Business: Allows users to create their own social networks.

Location: Palo Alto, CA

More Info: About Ning

CEO: Gina Bianchini

Investors: Marc Andreessen, Reid Hoffman, Legg Mason, Allen & Company, Lightspeed Venture Partners

Analysis: Ning's traffic continues to soar -- doubling in the past year to about 6 million monthly uniques in the US. Yes, social networks can be tough to monetise, so many scoff at the $500 million valuation the company reportedly received last year.

However, Ning's model is somewhat different than the typical social network ad-driven model. People pay Ning to create social networks on its platform -- at least if they want to run ads or have their own domain name.

We think the $500 million valuation may be a bit aggressive, but conditions haven't changed much since the last valuation round, so we're going with it. We estimate the company will make about $10 million this year so a $500 million valuation is a healthy 50-times revenue.

28. Angie's List

Estimated Value: $460 million

Business: Provides user reviews of local services.

Location: Indianapolis, IN

More Info: About Angie's List

CEO: William S. Oesterle

Investors: Lighthouse Capital Ventures, Battery Ventures

Analysis: With all the free service recommendation sites out there it's hard to believe people would pay up for contractor referrals, but Angie's List has been quietly running this business since 1995. The company has about 750,000 subscribers who spend about $50 a year to access information from Angie's List.

The entrance of newer, free competitors in the space doesn't appear to be having an impact on Angie's List. Traffic to the site has more than doubled in the past year, and a lot of this has translated into paying subscribers as revenue will likely grow 30% this year.

We estimate the company will generate just short of $50 million in sales this year and apply a 10-times revenue multiple to derive a $460 million valuation.

29. ReachLocal

Estimated Value: $450 million

Business: Ad Network

Location: Woodland Hills, CA

More Info: About ReachLocal

CEO: Zorik Gordon

Investors: VantagePoint Venture Partners, Rho Ventures, Galleon Special Opportunity Partners

Analysis: ReachLocal's network model targets campaigns on the local level for both local and national advertisers and is attempting to fill a much needed hole in internet advertising -- campaigns targeted at the local level that can be made with a single buy.

The company has had success so far, generating an estimated $150 million in revenue this year. We apply a 3-times multiple to revenue, resulting in a $450 million valuation.

30. Indeed

Estimated Value: $380 million

Business: Job search engine that aggregates job listings from thousands of sites.

Location: Stamford, CT

More Info: About Indeed

CEO: Paul Forster

Investors: The New York Times Company, Union Square Ventures, Allen & Company

Analysis: Another company whose business model is suited well for the struggling job market, Indeed is a job listing search engine that aggregates job postings from around the web. The company has grown its monthly audience by 4 million in the last year alone, and now currently reaches about 11 million unique visitors a month.

Indeed is one of those business models that doesn't need to run expensive ads on its site in order to turn a profit since it gets its content for free. In addition, its Pay-Per-Click ads have held up relatively well in the past year.

We estimate Indeed will generate about $40 million in revenue this year. Due to its strong growth and high margins we apply a 10 times multiple to revenue, resulting in a $380 million valuation.

31. Efficient Frontier

Estimated Value: $380 million

Business: Search-engine marketing firm

Location: Mountain View, California

More Info: Efficient Frontier

CEO: David Karnstedt

Investors: Redpoint Ventures and Cambrian Ventures

Analysis: Search ad agency Efficient Frontier has held up relatively well in the past year as search has outperformed display. The company has a fairly modest $750 million in annual search budgets under management so has more room to grow (added $150 million in the last year).

We estimate about $60 million in revenue this year and a 6-times multiple, resulting in a $380 million valuation.

32. Gilt Groupe

Estimated Value: $370 million

Business: Gilt is where rich people find deals. The company offers access to private online sales of luxury and fashion brands.

Location: New York, NY

More Info: About Gilt Groupe

CEO: Susan Lyne

Investors: General Atlantic, Matrix Partners

Analysis: Gilt has an interesting business model, which basically takes excess inventory of luxury goods and sells them on a members-only, by-invitation-only e-commerce site. The company is well-funded and has a management team with a lot of experience in the industry. We think e-commerce will continue to gain share of the overall US retail market, which bodes well for sites like Gilt.

We estimate the company will earn about $160 million in revenue this year. Applying a 2-to-3-times revenue multiple due to low e-commerce margins and strong growth leads to a $370 million valuation.

Disclosure: Gilt Groupe shares investors with The Business Insider

33. Glam Media

Estimated Value: $360 million

Business: Fashion/style ad network

Location: Brisbane, CA

More Info: About Glam Media

CEO: Samir Arora

Investors: Hubert Burda Media, GLG Partners, Hercules Technology Growth Capital, Accel Partners, Draper Fisher Jurvetson, Walden Venture Capital, Information Capital LLC, DAG Ventures, Mizuho Venture Capital

Analysis: Glam remains one of the leading ad networks with plenty of cash in the bank, but the steep drop in display advertising this year likely hurt revenue at the company. We remain concerned at what seems like a continuous flood of ad networks, but Glam has been around a while and has a strong balance sheet so we feel comfortable it is in a good position.

We estimate about $120 million in revenue this year and apply a 3-times multiple, resulting in a $360 million valuation.

Image: Wikimedia

36. MagicJack

Estimated Value: $300 million

Business: Parent company YMax makes Internet phone device called MagicJack

Location: West Palm Beach, FL

More Info: About Magic Jack

CEO: Donald Burns

Investors: Self-Funded

Analysis: MagicJack's biggest selling point is its price -- $25 per year for unlimited calling -- but it's also very simple. Customers plug their phones into a USB adaptor, then into a computer, and can make Internet-based VOIP calls for a fraction of the price they pay on their landlines.

Apparently consumers agree and the company is set to generate about $100 million in revenue this year. We apply a 3-times multiple to revenue, resulting in a $300 million valuation.

37. Yodle

Estimated Value: $300 million

Business: SEM agency for local businesses

Location: New York, NY

More Info: About Yodle

CEO: Court Cunningham

Investors: Bessemer Venture Partners, Draper Fisher Jurvetson, Draper Fisher Jurvetson Growth and JAFCO Ventures

Analysis: Another SEM agency that has done well the past year, Yodle specialises in helping local businesses drive customers to their sites and in some cases builds websites for some of its clients.

We estimate $50 million in revenue this year and apply a 6-times multiple to arrive at a $300 million valuation.

38. MiniClip

Estimated Value: $290 million

Business: Social Gaming

Location: England

More Info: About MiniClip

CEO: Robert Small

Investors: Self-Funded

Analysis: MiniClip is likely one of the lesser known online gaming companies, but the company reaches about 40 million players every month, most aged under 18. The company makes its money from a combination of advertising and virtual goods.

We estimate about $35 million in revenue this year and apply an 8-times multiple for a valuation around $290 million.

41. Federated Media

Estimated Value: $265 million

Business: High-end ad network: sells and serves ad campaigns for web sites.

Location: San Francisco, CA

More Info: About Federated Media

CEO: John Battelle

Investors: Omidyar Network, New York Times, Mitchell Kapor, Andrew Anker, Mike Homer, Tim O'Reilly, JP Morgan, Oak Investment Partners

Analysis: Federated has shifted in recent years from selling primarily display advertising to focusing more on custom sponsorships that incorporate engagement and interaction elements into ad packages. The company has found some success moving to this higher-CPM model, but the weakness in branding advertising the past year almost certainly hit the company's top-line.

We estimate revenue declined modestly this year to about $44 million. We apply a 6-times multiple to revenue, resulting in a $265 million valuation.

Disclosure: Federated Media is an advertising partner for The Business Insider

42. Yelp

Estimated Value: $265 million

Business: Social network for recommendations on local businesses, restaurants, and the like.

Location: San Francisco, CA

More Info: About Yelp

CEO: Jeremy Stoppelman

Investors: Max Levchin, Bessemer Venture Partners, Benchmark Capital, DAG Ventures

Analysis: Yelp's social-network recommendation model is not new, but the company has managed to successfully take on leaders like Citysearch in the space to grow its audience to over 30 million US users per month, according to the latest Compete numbers.

Yelp's sponsored listings command very high CPMs given their local targeting and active user-base. We estimate the company will earn just over $30 million in revenue this year and apply an 8-times multiple to revenue, resulting in a $265 million valuation.

43. Thumbplay

Estimated Value: $260 million

Business: Thumbplay sells ringtones, wallpapers, games, and a few other goodies for cell phones.

Location: New York, NY

More Info: About Thumbplay

CEO: Are Traasdahl

Investors: Brookside Capital, Bain Capital Ventures, Meritech Capital Partners, New Enterprise Associates, Hatch Ventures, Softbank Capital

Analysis: Thumbplay raised a lot of money when ringtone sales were booming and we believe has likely experienced some revenue growth stagnation the past year as 1) consumers cut back spending and 2) people buy less ringtones.

Still, we don't think ringtone sales have fallen as much as many believe they have and the company's subscription model sells more than just ringtones so it remains diversified. We do think long-term Thumbplay will need to address challenges to its business -- namely people buying less subscription-based mobile entertainment.

We estimate just under $90 million in revenue this year and apply a 3-times multiple to come up with a $260 million valuation.

44. Playdom

Estimated Value: $260 million

Business: Developer of social, online and mobile games.

Location: Mountain View, CA

More Info: About Playdom

CEO: John Pleasants

Investors: Self-Funded

Analysis: Playdom is largely seen as the smaller competitor to Zynga in the social games space but we believe there is plenty of room in that category and Playdom is building a nice business on top of the industry's growth. Like Zynga, Playdom creates inexpensive-to-make games and distributes them on social networks. Its games are addictive and the company makes money off advertising and the sale of virtual goods.

We estimate just over $30 million in revenue this year. We apply the same 8-times revenue multiple as Zynga given high growth and margins. As a result, we come up with about a $260 million valuation.

46. Zazzle

Estimated Value: $225 million

Business: Runs a site and manufacturing business allowing customers to create and custom design everything from T-shirts to coffee mugs to bumper stickers.

Location: Redwood City, CA

More Info: About Zazzle

CEO: Robert Beaver

Investors: Sherpalo Ventures, Kleiner Perkins Caufield & Byers, TransCosmos

Analysis: Zazzle's user-generated merchandise e-commerce site has been around since 1999 and has quietly built a solid business while other dot-coms have gone bust. Users create many of the logos and images used on the mugs, shirts and other acessories the company sells, taking a cut of any revenue earned on the products.

We estimate the company earned about $110 million in revenue this year and apply a 2-times multiple given a tough retail environment and e-commerce type margins. As a result, we arrive at a $225 million valuation.

47. Diapers.com

Estimated Value: $200 million

Business: Sells diapers and other products that new parents need.

Location: Montclair, NJ

More Info: About Diapers.com

CEO: Marc Lore

Investors: Leonard Lodish, Nicholas Negroponte, BEV Capital, Bessemer Venture Partners, Accel Partners

Analysis: Sometimes great ideas are fairly simple. Who would have guessed there would be a sizable market for the sale of Diapers online? Apparently Diapers.com founders Marc Lore and Vinit Bharara after being frustrated with the brick-and-mortar diaper shopping experience.

We estimate the company will earn just under $70 million in revenue this year and apply a 3-times multiple (on the high end for an e-commerce company) to come up with a $200 million valuation.

50. Digg

Estimated Value: $190 million

Business: Social news site where users submit and vote on news stories.

Location: San Francisco, CA

More Info: About Digg

CEO: Jay Adelson

Investors: Greylock Partners, Omidyar Network, Marc Andreessen, Reid Hoffman, Ron Conway, Mike Maples, Al Avery, Highland Capital Partners, SVB Financial Group

Analysis: Digg's user-generated news-tagging model continues to grow its audience -- monthly uniques have almost doubled in the past year to about 43 million. There have recently been a lot of questions about whether Digg can effectively monetise its site given the user-generated editorial process and lack of targeting, but it has released some new ad products this year and we believe it is moving in the right direction.

We estimate $13 million in revenue this year and given its strong growth and low-overhead, apply a 15-times multiple, resulting in a $190 million valuation.

Image: Wikimedia

51. Etsy

Estimated Value: $180 million

Business: A site dedicated to buying and selling homemade and handmade goods ('eBay for arts and crafts').

Location: Brooklyn, New York

More Info: About Etsy

CEO: Maria Thomas

Investors: Caterina Fake, Stewart Butterfield, Joshua Schachter, Albert Wenger, Union Square Ventures, Accel Partners, Hubert Burda Media

Analysis: Etsy's platform for users to buy and sell handmade items has seen its traffic more than double the past year as it has proven there is a sizable market for handmade goods online.

We estimate $12 million in net revenue this year and apply a 15-times multiple (remember this is net e-commerce, not gross) to arrive at a $180 million valuation.

52. Mint

Estimated Value: $170 million

Business: Online Personal Finance

Location: Mountain View, CA

More Info: About Mint

CEO: Aaron Patzer

Investors: DAG Ventures, Benchmark Capital, Shasta Ventures, First Round Capital, several angels.

Analysis: Mint was one of the few startups picked up this year at prices above firesale. In mid-September, Intuit agreed to acquire the company for $170 million.

We were a bit surprised at the price paid for the company given revenues generated by its lead-generation model are unclear, but if any strategic acquirer is given a pass for paying too much, it would be Intuit, which is in need of a growth aspect to its story.

53. Metacafe

Estimated Value: $150 million

Business: Online video aggregator

Location: Palo Alto, CA

More Info: About Metacafe

CEO: Erick Hachenburg

Investors: Accel Partners, Benchmark Capital, DAG Ventures, Highland Capital Partners

Analysis: Metacafe is one of the older online video sites, and with its deep pockets, will likely be able to weather the downturn better than some of its lesser-funded competitors. It recently started running sponsored hubs meant to improve the quality of its advertising, and continues to grow audience.

So, while we're somewhat wary of the prospects for online video aggregators, we believe Metacafe is fairly well-positioned within the space.

Given valuations in the online media space and Metacafe's audience/competitive position, we calculate a $150 million valuation.

54. Huffington Post

Estimated Value: $150 million

Business: An online newspaper/news aggregator and group blog.

Location: New York, NY

More Info: About The Huffington Post

CEO: Eric Hippeau

Investors: Greycroft Partners, Softbank Capital, Ken Lerer, Bob Pittman, Oak Investment Partners

Analysis: Many naysayers thought Huffington Post's moment in the spotlight would fade away after the presidential election, but one year later the political/news blog has nearly doubled its audience to around 7 million monthly US unique visitors. The company has proven to be more than adept at balancing reporting the news with growing visitors and pageviews.

We estimate about $10 million in 2009 revenue and apply a 15-times multiple (higher than other blogs given growth and brand strength) to arrive at a $150 million valuation.

55. Spot Runner

Estimated Value: $80 million

Business: Allows advertisers to create and place TV ads on local cable channels.

Location: Los Angeles, CA

More Info: About Spot Runner

CEO: Nick Grouf

Investors: Battery Ventures, Comerica Bank, Index Ventures, Allen & Company, Capital Research and Management, CBS, Tudor Investments, WPP, Lachlan Murdoch, Vivi Nevo. Interpublic Group, Daily Mail and General Trust, Grupo Televisa, Groupe Arnault/LVMH, Legg Mason

Analysis: Spot Runner's model of providing online ad sales for local cable and TV channels sounds promising, except when it is 2009 and cable/TV advertising has gotten hammered. We believe there is still room for companies that facilitate local cable/TV ad-sales even with the challenging secular trends, but Spot Runner falls 30 spots this year in our list due to a likely decrease revenue and the fact that traditional TV is so far out of favour currently.

We estimate about $40 million in revenue this year and apply a 2-times multiple for an $80 million valuation.

56. Next New Networks

Estimated Value: $80 million

Business: Professional online video network

Location: New York, NY

More Info: About Next New Networks

CEO: Lance Podell

Investors: Goldman Sachs, Spark Capital, Saban Media Group, Pilot Group, Bob Pittman, Fuse Capital

Analysis: Next New Networks' syndicated Webisode model is a tough one to pull off. The company must make cheap but compelling programming, then convince advertisers of the value of selling sponsorships on that content across multiple distribution points like YouTube, Blip.tv, Yahoo, and many other portals.

Still, the company appears to be making a lot of progress toward that goal, consistently growing its audience and advertiser base with high-rate product-placement packages.

We estimate about $8 million in revenue this year (which admittedly may be on the aggressive side) and apply a 10-times multiple to come up with a $80 million valuation.

59. Associated Content

Estimated Value: $35 million

Business: Pays users to contribute news stories on popular topics, which are then optimised for search-engine discovery.

Location: Denver, CO

More Info: About Associated Content

CEO: Patrick Keane

Investors: Tim Armstrong, Softbank Capital, Canaan Partners

Analysis: We think Associated Content's strategy -- acquiring tons of 'pro-am' content, optimising it for search, then selling ads around the content and licensing it to third parties -- is a good one. The lack of targeting will present challenges to earning high ad rates and licensing fees, but the limited editorial costs give the company time to grow into a meaningful money maker.

We estimate about $5 million in 2009 revenue and apply a 7-times multiple, resulting in a $35 million valuation.

60. Brand.net

Estimated Value: $30 million

Business: Online advertising network focused exclusively on brand advertising.

Location: San Mateo, CA

More Info: About Brand.net

CEO: Elizabeth Blair

Investors: Norwest Venture Partners, InterWest Partners

Analysis: Former Yahoo Elizabeth Blair has built an impressive team of ad sales vets at Brand.net, but ran smack into the display-hating ad recession of 2008 and 2009. This isn't good for an ad network specializing in branding campaigns. Still, even with the ad network space getting increasingly crowded, Brand.net has shown some promise winning decent campaigns early on, even in the tough ad environment.

We estimate about $10 million in revenue this year and apply a 3-times multiple to come up with a $30 million valuation.

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