Instagram (Acquired by Facebook for $1 billion):
Original seed funding of $500,000 in March, 2010
Series A funding of $7 million in Feb, 2011 valuing the co at $20 mln
Series B funding of $50 million in Apr, 2012 valued co at $500 mln
Week later Facebook made a whopping $1 billion buyout offer.
At the time of acquisition it had only 11 employees and no revenues at all.
Snapchat has similar story too, recently turned down few offers up to $4 billion. Till last month the founders worked from a beach front house in CA. It still has no revenues.
We believe Hang w/ has all the makings of a mobile success story and we are greatly enthused by the progress.
For those who don’t know, the app allows users to broadcast live video from a mobile phone to thousands of followers simultaneously.
We describe the technology like a live video version of Twitter - and the app is showing strong signs of viral, organic growth.
In only 7 months, the app has generated approximately 700,000 downloads, nearly 2,000,000 live broadcasts and more than 300,000,000 “Hang w/ me” notifications. More than 80 celebrities have signed up for the service. Several, such as 50 Cent and Timbaland have actually invested in the technology.
We believe Hang w/ has the ability to change the world by bringing people together to show us all how we are the same - and how we are different. It is a game changer - and dozens of journalists, bloggers and app reviewers agree.
In one week, we will release the 2.0 version of the platform and we think it's going to blow people's minds.
Yes, our revenues have been modest at only $3.5M for 2012. But we are in a space where companies like Twitter, Waze, Tumblr, Snapchat and Instagram have received massive valuations with out posting massive revenues - and in most cases, no revenues.
Our Custom Development business when evaluated as a stand alone business unit is now running efficiently and is well positioned for growth or potential acquisition. And we believe our Hang w/ application has the potential to become a billion dollar social media platform.
We are a small company with a relatively small base of investors - so sadly we are subject to fluctuations in our valuations that are well outside of our control.
But I assure the author and his readers that we are here doing the right thing, day in and day out - with the goal of creating real value for ourselves, our employees and our investors.
Once again, I have never sold a single share of stock. And I have no plans to do so. MEDL is definitely not a pump nor a dump.
? Does an individual have to report to SEC if he/she takes over 5% stake in company? Or does that rule only apply to institutional investors? We are a group of individuals just started building up a stake in this company but still far from reaching the 5% just wanting to make sure if any of you knew for sure. We are going to get advice on it from professional investment bankers as well. TIA
Our investment goal is 3 yr holding period looking for at least 30% after tax gains.
Sentiment: Strong Buy
Management will not sell under $800 mln valuation. I did research your suggested Mitek (MITK) and like it. Check my post on its message board. You may like what I posted. Thanks
MITK is hot Mobile play given its technology is in infancy stage when it comes to its adoption. Daily more people use Mitek technology not even knowing it. If you deposit your pay check or any other check using your mobile phone at bank like Citi or Bank of America or Chase you may have used this little company's product. Already over $13 bln of transactions handled by its licensed software.
Still not late at all to load up at $4.25, It has started its run now.
Signed 708 financial institutions to date with 318 customers live as of Dec. 31, 2012
MITEK customers are BANK OF AMERICA, CHASE, WELLS FARGO, PROGRESSIVE INSURANCE, US BANK, CITIBANK and 700 more.
Entered into strategic partnership with US Bank for commercial launch of Mobile Photo Bill Pay™
Increased Mobile Deposit transaction usage over 25% for third consecutive quarter
Sixth mobile imaging patent issued to the Company by the USPTO, bringing the total number of issued patents to 13 with 14 additional patents pending.
Announced more than 20 prepaid card initiatives from some of the most innovative banks, large retailers and wireless carriers by making the process of loading prepaid cards simple and easy with
Signed a strategic mobile imaging partnership with US Bank to deliver the first Mobile Photo Bill Pay product to US Bank customers in early 2013.
MITK will be $20 - $40 within 15 months if my calculations prove to be correct in forecasting.
FB would and can easily buyout this company and so can others to whom it makes sense to have it for example GOOG or AOL. Question will be now how long can VELT manage to remain independent given some buyout vultures will be preying this great company. Imagine instantly getting some of over 1400 world's best companies as your advertising customers.
Velti fetches $870 mln value from Merger & Acquisition financial analyst calculations. To derive valuations in internet, technology, mobile and related businesses is hard given there is no gold standard. Just look at Facebook for example. Its current market capital is around $68 billion. It will have annual sales of $7 billion. So based on sales multiples it commands almost 9x. No other things considered like earnings, debt, patents, litigations and other derivables. Now lets get back to Velti. Company should have sales over $300 mln in 2013 so just based on it if I give the same multiple as FB then I conclude value of $2.7 bln
But I am very conservative when it comes to deriving company valuations as I factor every aspect of the business fundamentals including industry multiples, comparison to competitors valuations and what not. My most conservative estimate for current valuation is $870 mln so obviously current $270 mln today's value on stock market makes this pretty attractive for companies looking to acquire.
If this company was private the offers well could be like Instagram that received $1 bln from Facebook despite it having barely any revenues at the time of acquisition.
I suspect there are some private equity luring to take this private by making a decent offer but more likely scenario is for companies like Google or Facebook or Millenia Media to grab this opportunity to buyout at attractive valuation. To throw $1 bln is pocket change for companies like FB, GOOG, AOL or even AAPL to whom this could be very strategic & complimentary investment.