I recently saw in the news that Punchfork.com was acquired by Pintrest.com for an undisclosed amount. Given Punchfork.com has 100,000 monthly visitors and 80,000 lines on Facebook but no advertising or revenue model, Im trying to use that situation as a gauge for how much my site (with similar traffic and similar product ) would be worth.
I have looked into some models for pre-money valuations for startups, but most of them include some calculation for future revenues. I dont have any ads on my site or any revenue model either, so how would Pintrest have calculated how much to purchase Punchfork for?
Im trying to use that situation as a gauge for how much my site (with similar traffic and similar product ) would be worth.Pinterest didn't purchase Punchfork primarily because of the number of users.
They purchased it because Punchfork dominated a slice of the same market space as Pinterest (image based curation - in Punchfork's case of recipes). I would imagine that part of it is also getting the team's knowledge in-house.
Pinterest have - up front - bought Punchfork to shut it down. They've killed a competitor. What they would have paid to do that would depend on how much Punchfork thought having a competitor in their space would have damaged them.
Basically, the valuation depends on what how the buyer is expecting to get value from the site. There are many objectives:
So in essence a valuation is based what the buyer is looking for. I hope this helps.