First, congratulations to the Yelp team on raising another round.
Just last week at the Online Marketing Summit after our panel talk, I spoke to a few people from other verticals like medical, finance and automotive about how I think everyone sees the world through their own little lens. By the same token, I think I got a harsh taste when I started reading some of the comments on TechCrunch this morning. It's no secret that I'm a huge fan of Yelp's. I think the Yelp crew know what they are doing, they are attracting the right crowds and they are doing all the right things to retain their members. So with that said, I was surprised that there were as many negative comments about Yelp's valuation. I thought everyone felt the way I did about Yelp - intense love and adoration. Apparently not.
Here’s how this works: Local interest websites are always non-viral, because they operate in the disjoint “internets” of each metropolitan area. So one needs to wait a very long time before they reach decent size."That comment is so money!
Besides, DC is another town that has a ridiculously high number of restaurants per capita. An east coast presence is the logical next step.
If there's one area where I think Yelp can do better, it's working with the tech crowd in SF and maybe forming some more partnerships, like they have with Nokia. It's commendable that Yelp has the kind of reputation they have with the consumer crowd, but the influential web crowd in SF can be great evangelists for them (trust me ;) And if there's one thing I've learned from Microsoft, that is to have great partners.
Yelp's valuation is not high. Let's not forget that
There's still a LOT of work to be done.
There's several ways to determine a company's worth, and if Yelp's user trends and impressions are any measure, they are going to take off in a big(ger) way.
PS: This person ought to be ashamed of himself/herself - nice job maintaining your blog.