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Yelp is a great site - I've recently been using it to find great spots to grab a weekend breakfast. They have raised a total of $31M. Wow - that's a BIG NUMBER. And one wonders - WHY? Certainly the technology development and data center costs can build the equivalent site for far less.
An even bigger number - their purported $200M valuation. That's $25 per monthly unique. That's BUBBLE territory, in my book.
Revenues are claimed at "sub $10M". My (generous) guess - they're getting 20M monthly page views at $4 CPM -> that's less than $1M per year. It doesn't make sense to me they can be making anywhere near $10M.
Quoted: Yelp, the popular local review site, will soon announce a new $15 million dollar round of financing led by DAG Ventures. The valuation ...
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