What Really Fuels These Big Money Valuations For The Tech Companies.

I suppose its something I have truly begun to wonder about. Here the only news that constantly gets thrown in our faces is about the global economic collapse. However for these mega companies and their incredible valuations for these huge IPO's males one bound to question, how do these companies do it?


Are the VC's just so eager to sink money into to get these companies that may be initially no more than a novel idea, intelectual propert, from IP to Ipo. 

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ERICK SCHONFELD

July 15th, 2011

The Endless Bubble Debate: Kedrosky Vs. Wadhwa

With valuations for tech companies going through the roof from Facebook on down to Dropbox, the endless bubble debate sees no end. Paul Kedrosky and Vivek Wadhwa recently got into it onBloomberg West TV.

Professor Wadhwa thinks it will all end badly with Grandma losing her piggy bank. Kedrosky points out that bubbles usually occur at the tail end of a market run-up, and he predicts we have at least a good 4 to 5 years left for this one. 

Yelp CEO Jeremy Stoppelman, he always likes to point out how many reviews there are on Yelp. It’s a point of pride and competitive differentiation. Even Google Places, whichborrows liberally from Yelp reviews, seems to think so.

Today, Yelp crossed 20 million reviews, up from 10 million in March, 2010 (and 17 million last April). 

The reviews bring in the visitors, and visitor growth tracks pretty closely with the growth in reviews. Yelp hit 53 million visitors in June, according to its own stats. → Read More

Editors Note: Okay Erick, you pulled me in, lets move forward with this!

Publishers Note: Yes! Everyone wants to hear what everyone has to say! Have you been on Yelp yet,?

Editor: No, but I am going to make a point to find out. When ever that many users are contributing this going to be part of the whole Paradigm-Shift Info scene we have been trying to unravel.

Publisher: Call me after after you finish this okay?

Editor: Seriously, you mean call, as in the phone?

Publisher: Lol, just give me a call?

Editor: Are we going to leave all this stuff, in the post?

Publisher: That depends on how many words this comes out to.

It took about 6 years for Yelp to get to 20 million reviews. Yelp was founded in 2004, and it took two and a half years to get to its first million reviews (in May, 2007). Then it took roughly another three years to get to 10 million (March, 2010), and then added this last 10 million in a year and a quarter.

Yelp focusses so much on reviews, and trying to get quality user reviews, because everything else can be replicated. With so many places databases popping up, creating a directory of local businesses is easier than ever, but Yelp has always been about the user reviews as a sorting mechanism to find the best places nearby.

Stoppelman is so protective of Yelp’s reviews that he still won’t allow mobile users to upload reviews from their phones because he wants them to be well thought-out. 

 Editors Note: I don't know how may words this come out to, I'm using BlogSpot not WordPress. Personally I never got into doing all kinds of writing on the hand held or smart phones. Yet it sounds like this may be a product used by the smart phone set. Every where you look people are texting. I just find it difficult with the tiny keyboards.

The thing I can see if they are reviewing products. say restaurants than if the reviews are bad, then how will they will sell it to the advertisers?

Yelp!

http://techcrunch.com/2011/07/15/yelp-20-million-reviews/