      Tomasz Tunguz Blog · 2014-05-06
      · 4412d
    

Consumer Internet Market Correction: Category-Specific Performance Analysis

Tomasz Tunguz analyzes the performance of venture-backed consumer internet IPOs since 2010, finding an average 25% decline in enterprise value over six months. The correction is unevenly distributed across eight categories, with social, real estate, and gaming gaining value while financial and ad tech sectors suffer significant losses. Consumer companies show less compression than SaaS counterparts due to lower starting valuation multiples.

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Metrics in this report

EV-to-Revenue Multiple

3.5multiple

median

consumer internet companies

EV-to-Revenue Multiple Comparison

30%

difference

consumer vs SaaS (consumer lower)

Enterprise Value Decline

25%

average

public consumer internet companies over six months

Individual Stock Losses

>25%

minimum

BrightCove and RocketFuel from highs

SaaS Market Decline

33%

average

public SaaS companies from highs