Comments on: Zillow to IPO?

By: Shuki Haiminis

Shuki Haiminis — Sat, 10 Feb 2007 17:06:26 +0000

I think that the direction that the guys at Zillow are taking is the right one. I think it may be a bit early for an IPO though. I know Zillow is becoming used more and more everyday but I don’t think it is just yet a common household name. Once that happens it will be time for an IPO.

By: VC Ratings: Zillow IPO talk is premature

VC Ratings: Zillow IPO talk is premature — Fri, 26 Jan 2007 02:25:40 +0000

[...] Benchmark Capital and Technology Crossover Ventures or not, 2010 is more realistic than 2007 as an IPO target date for [...]

By: John Cook

John Cook — Mon, 22 Jan 2007 22:49:09 +0000

Thanks for linking to my story. I always enjoy your blog.

Just to be clear, I did not predict that Zillow would go for an IPO, one of the VCs that I interviewed did.

John Cook

By: mike

mike — Sun, 21 Jan 2007 05:49:06 +0000

VC’s are just playing the game. Its like a pyramid scheme. VC put up some $ on a nutty idea from a guy from Stanford. Pump up the volume on the business model, IPO sell their enough of their holdings into the market to get a decent return on their invested capital and leave the rest on the table for upside if someone eventually figures out how to make money at the company. Remember WebVan?

By: Jesse Barron

Jesse Barron — Sun, 21 Jan 2007 00:53:51 +0000

Typo! Not a 70% profit margin. I only wish!

I meant 40%. Not the best out there, but still very respectable and it demonstrates that we are good at keeping costs in-line.

The 7 key is right on top of the 4 key!

By: Jesse Barron

Jesse Barron — Sat, 20 Jan 2007 23:59:33 +0000

I sure wouldn’t buy any shares! How in the world are they going to make enough money? At most, their concept is probably worth less than 15 million a year in ad revenue? Maybe a little more? They surely won’t make enough to keep their investors happy!

What amazes me is how a company that buys some data and publishes a Web site can burn through so much cash.

I am co-owner of a company that probably has more revenue than Zillow. Our total initial investment? $500.00. Time to profitability? One month.

If I had $57 million to start or grow my business, it would surely be a household name by the time I spent that money. Zillow is not yet a household name, even though there has been considerate media coverage.

I may be slightly bitter, but it is saddening to me that a tech company can get $57 million based on an idea, yet I have to jump through a million hoops to get an expansion loan for my profitable venture, which operates on a 70% profit margin.

Based on the decisions some of these VC’s make, it makes me wonder how they were smart enough to earn the initial money required to become a VC!

By: Tony Arko

Tony Arko — Sat, 20 Jan 2007 14:58:28 +0000

Without a look at the numbers and how bad the burn rate actually is, it is hard to say one way or the other. If they are growing at a sustainable rate and there is a light at the end of the proverbial tunnel, ie. a profit, then they could be a good speculative stock. They might not have a great product but they are very “sticky”. They have a pretty good PR machine in place.

By: mike

mike — Fri, 19 Jan 2007 22:06:13 +0000

Well, that doesn’t suprise me. Venture firms, have to get a return on capital and provide liquidity or the money will go somewhere else… currently hedge funds run guys with more guts than brains are raking in the $$$.

Revenue? Who needs that… they have a good story

By: Incredible Agent

Incredible Agent — Fri, 19 Jan 2007 18:45:36 +0000

IPO!? Didn’t we learn anything from ‘99? I would have to believe they have a rock solid, long-term, industry adopted financial model before I would even considered investing. They have yet to prove that to me. Until then, I’ll be waiting on the fence watching to see how it all shakes out.