The amount of money RAISED has little to do with its overall valuation. Every IPO, has insiders offer 5-20% of the company or whatever at which point the overall company gets a valuation. Facebook got over $10B on a valuation of $100B when it IPO'd. The goal is always to sell as little equity as possible to the public. Makes sense if you think the company has huge upside as you want all of it. Now if you got insiders like Lefofsky(sp) of Groupon or Pincus of Zynga selling then you got a problem...guess what both imploded. Insider transactions is what everyone should watch. Yahoo had no insiders buy for years, the occasional 5,000 shares notwithstanding. Even now I think they're dumping their free options probably for tax purposes.