Tech Draft 2011: After Their IPO, Who Are the Pretenders and the Real Deals?
With the upcoming NBA Draft, I thought I would create my own mock draft Silicon Valley style by listing the upcoming tech IPOs with a brief analysis a la Dick Vitale, baby!
1. Facebook. Without a doubt, a prime-time-player. How can you go wrong with selecting Facebook number one? Is this valued at $50 billion or $80 billion? Who cares. All we know it's easily worth tens of billions and is here to stay as the social networker juggernaut.
2. Groupon. Historically, the second player chosen in the NBA draft has a high probability of being a bust. Groupon's revenue and user numbers are too difficult to pass up at the second slot, but just remember history. If I were a smart GM that looks beyond the size, vertical leap and flash, I would pass on Groupon since I don't believe he has work on the fundamentals during school. No jump shot and poor free throw shooting. I just never believed their business model was defensible against various competitors across sectors.
3. Trulia. This is my sleeper out of Silicon Valley. From a lesser known conference, so he reminds me of Stephen Curry out of Davidson or Hall of Famer John Stockton out of Gonzaga. Will he be a bust like Adam Morrison, another Gonzaga alum, a solid contributor like Curry or a Hall of Famer like Stockton? They're profitable and strengthening their position in the online real estate space, but how will the landscape look 5 years from now? Who knows, but all I know is the kid can play!