{"id":44,"date":"2007-11-20T06:32:25","date_gmt":"2007-11-20T10:32:25","guid":{"rendered":"http:\/\/blog.websitebroker.com\/website-valuation\/how-do-venture-capitalists-value-websites"},"modified":"2011-12-11T22:45:13","modified_gmt":"2011-12-12T02:45:13","slug":"how-do-venture-capitalists-value-websites","status":"publish","type":"post","link":"https:\/\/www.websitebroker.com\/articles\/website-valuation\/how-do-venture-capitalists-value-websites","title":{"rendered":"How do Venture Capitalists value websites?"},"content":{"rendered":"<p>According to some publications Venture capitalists look at the following metrics when valuing an Internet property:<\/p>\n<p><strong>Cost of Acquisition<\/strong>: At the most prized content sites, at least 35 percent of new users are enrolled by existing users. In other words, they are added &#8220;virally.&#8221; The best example of this is MySpace.<\/p>\n<p><strong>Site Stickiness<\/strong>: A site becomes more valuable if frequent repeat visitors make up a high percentage of its traffic. At Facebook, for example, nearly 65 percent of users visit the network daily. User-generated content &#8211; such as photos, reviews, and links &#8211; tends to increase the stickiness of the site and will increase it&#8217;s value.<\/p>\n<p><strong>Add-on Services<\/strong>: Sites that offer fee-based premium accounts have more opportunity for future revenues and will command higher valuations. Even a 1% take rate on premium services is considered healthy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to some publications Venture capitalists look at the following metrics when valuing an Internet property: Cost of Acquisition: At the most prized content sites, at least 35 percent of new users are enrolled by existing users. In other words, they are added &#8220;virally.&#8221; The best example of this is MySpace. Site Stickiness: A site becomes more valuable\u2026 <span class=\"read-more\"><a href=\"https:\/\/www.websitebroker.com\/articles\/website-valuation\/how-do-venture-capitalists-value-websites\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[78,79,438],"_links":{"self":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts\/44"}],"collection":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/comments?post=44"}],"version-history":[{"count":1,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts\/44\/revisions"}],"predecessor-version":[{"id":655,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/posts\/44\/revisions\/655"}],"wp:attachment":[{"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/media?parent=44"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/categories?post=44"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.websitebroker.com\/articles\/wp-json\/wp\/v2\/tags?post=44"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}