Twitter Worth $75 Million?

So it is, at least according to the Silicon Alley Insider (SAI) Digital Startup valuation model.

The folks at SAI admit they're working with a limited data set, given that these are private companies and aren't really required to disclose anything. But still, $75 Million for a company with $0 Million in revenue? I don't care what multiples you use, the math just doesn't work.

Some of the data out there indicates that we may be nearing the bursting point of the Web 2.0 Bubble. I remember (fondly) the heyday of the first internet-induced bubble, as I also remember (much-less-fondly) the swift decline. We can expect more of the same this time around - as VC starts to demand (the nerve!) a return on their investment and the seemingly never ending funnel of cash dries up.

Twitter better find themselves a revenue model quick.

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