A VC in Vacationland

So you have a neat Web 2.0 site and you want to know the value of your site compared to others in your industry? 

 Bizak.com  is a website that computes the profitability of Internet start ups and compares that data to industry benchmarks. Based on a subscription model, Bizak targets entrepreneurs and investors interested in getting a “quickie” valuation of a property.  You provide some financial and visitor data and the web site returns a start ups “valuation”.  The site also has a social networking aspect, allowing entrepreneurs and investors to connect via the web.

How useful is such a tool? I suppose someone can get a fast idea of the potential value of a property, but I am skeptical about whether any investor or entrepreneur should believe the results  (Note–please do not pass this off as a 509(a) valuation).  There are many factors besides financial and visitor statistics that go into a true valuation of a company, such as management team experience, uniqueness of IP and competition.

But have some fun with this tool if you have a web based business.  You can always dream…