Re: UKNM: anyone got capital?

[Ross Sleight]

>Is it the same old story of the financial community not investing in UK

>start-ups?  Or is it that the size of the UK market still isn't big or

>mature enough to justify and find reasonable return for start-up

>businesses?  New economy or just a new media?


Hi David (voice across the water....:>)


One of many reasons/theories/hypotheses - I think that valuation multiples

in UK for exit plans are not as attractive when compared to the US

multiples - leading to less clamour for investment.  That's why a Freeserve

float will be good for the UK - we now have a valuation model, albeit based

on user lifetime value rather than revenue multiples.  �1,500 a user for a

free service? Got to be overvalued for sure, but other services can then

start to value themselves as a comparison if they are in the same sector

(and those small free ISP's with 20,000 users are suddenly worth �30m....not

bad really....:>)


R

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