Eventbrite raised $60 million; valuation: $650 million.
Adam Rifkin stashed this in @bgoldberg
Stashed in: Silicon Valley!
Bryan Goldberg: "Kevin Hartz has a lot to be proud of with Eventbrite, but I have no idea what he is doing from a capitalization standpoint. Even a cursory analysis of their (carefully shrouded) financial picture demonstrates that there is no way they can justify their valuation."
Their valuation is 12-14 times current year revenue ($50 million).
They have 210 employees.
TicketMaster was acquired by LiveNation, and combined they're worth $2 billion.
Sounds like T. Rowe Price and Tiger Global are hoping that Eventbrite can go public within 18 months at a $1 billion valuation.
So this is the market we live in. Investors will overpay for established companies for a chance at doubling their money.
Bryan Goldberg concludes: "Why are these CEOs raising all this money? Because they can. And that is the worst reason to raise capital."