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Yelp

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Estimated Value: $225 million

Business:
Collects and organizes recommendations on local businesses, restaurants, and the like. Strongest in California.

Location:
San Francisco, CA

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More Info: About Yelp

CEO: Jeremy Stoppleman

Investors:
DAG Ventures, Max Levchin, Bessemer Venture Partners, Benchmark Capital

Analysis:
Yelp lets users search for local businesses and see a list of recommendations and comments from other users who have been there. The downside: a lot to digest; some restaurants can have 50-plus reviews and the site itself can be overwhelming.

In February Yelp raised a $15 million fourth round (bringing its total to $31 million). The site landed about 9 million uniques in March.

We have little financial information for Yelp. The bull story is that once local newspaper ad revenue begins to crater (it will), this ad spending will flow online, and sites like Yelp will be in an ideal position to capture it. Given Yelp's enormous user base and cash resources, a slight premium to the $215 million post-money valuation of the last round seems warranted.

 

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