After watching startups like Facebook, Zynga, and Groupon explode in valuation, VCs are now pouring money into the next crop of startups.Valuations are skyrocketing as VCs compete to get in the next hot deal. They don’t want to miss out.
And suddenly, a lot of founders are finding themselves in the billion-dollar club.
Do they deserve it? Let us know in the comments.
Quora is an $86 million-dollar company with a billion-dollar state of mind.
So far it has raised $11 million at an $86 million valuation from Benchmark Capital and individual investors.
Earlier this year it was rumoured to be raising another round, but was rejecting offers that would make its valuation a 'mere' $300 million.
The founders think Quora has far more potential than that. It supposedly turned down a $1 billion acquisition offer.
Location-based check in startup Foursquare closed a $50 million round in June. That's in addition to the $20 million it previously raised.
Foursquare's rumoured valuation has been as high as $1 billion, but it is likely closer to $600 million .
The music company raised $100 million in June from Kleiner Perkins, Accel and DST, giving it a $1 billion valuation.
We've yet to see a wildly profitable online music company, though, and Spotify needs to figure out how to make money. It has to pay record labels a lot, so without a clear business model, the valuation looks airy.
TechCrunch says mobile gaming company Storm8 is raising a whopping $300 million round. Accel Partners and Technology Crossover Ventures could be leading the charge.
If it closes, Storm8 will be bumped up to billion-dollar-valuation status.
Jack Dorsey's mobile payment solution, Square, is another billion-dollar startup.
Kleiner Perkins led a $100 million round of financing at the end of June. Now the company has a $1 billion valuation; some wonder if it could be worth as much as $2 billion.
Earlier this year, the flash sales site raised an additional $138 million.
It's on track to generate $500 million in revenue this year.
Despite all the negative press, Airbnb is doing very well.
In 2010, bookings grew 800% to 800,000; that number is increasing by 40-50% per month.
Last month it raised a massive $112 million round, reaching a billion-dollar valuation.
Private sales site Vente Privee currently has a $3 billion valuation, but its founder, Jacques-Antoine Granjon, wants that number to be much higher.
In 2010, Vente Privee's revenue was $1.3 billion. This year it is on track to do $1.5 billion. Granjon wants that number to become $15 billion by turning his site into the Amazon of Europe.
Dropbox closed a $7.2 million round in 2007, but it is rumoured to be raising a more substantial round now.
TechCrunch heard that the file storing/sharing company is raising between $200 and $300 million.
Depending on the final number, Dropbox's valuation could jump from $2 billion to $5 or $10 billion.
WILD CARD: Rovio only has a $200 million valuation, but if Angry Birds keeps its momentum, it could become a billion-dollar company.
Last year, the Angry Birds maker generated $5 million in revenue and $3 million in profits.
In March, Rovio raised a massive round, shooting its valuation up to $200 million. It's a bit of a stretch, but if Angry Birds keeps up its momentum, it could turn Rovio into a billion-dollar company.