The online effect continues

The apparent insatiable demand for social media or internet companies was demonstrated again this week, when on Monday GSV Capital acquired shares in Facebook and saw its own share price increase by 40% when it announced it had bought just under $7m worth of stock via a private secondary purchase.

On top of the ongoing frenzied hope and speculation that Facebook will IPO this year, 2011 has seen the IPOs of LinkedIn and Freeze Tag to name just a couple. And this is before we even get to the “online” companies which have been targeted by financial sponsors or corporate buyers.
 
Adding further fuel to the fire, yesterday two more online/social media companies were rumoured to be in the early stages of discussing planned IPOs. Living Social, the online daily deals site, and Zynga, the online social game company, are apparently discussing an IPO and are expected to file their respective paperwork.
 
Here we are in 2011 seeing a not dissimilar trend to back in the late 90s, where dotcom companies were all the rage. The primary difference today is that whilst relatively small numbers of today's versions of the dotcom company are profitable, at least they actually have revenues!
 

Filed under: online, technology, IPOs