Yelp Raises $15 Million in Round Four

Yelp logo

Yelp has raised a fourth round of financing ($15 million) and is opening a New York office. TechCrunch recounts the history of financing and makes the claim that the valuation is now somewhere around $200 million.

Yelp’s success is about its “personality” and “transparency.” The site has managed to create a brand as a result of offering content that people have come to value and trust.

This brand identity is what now lifts it above many or most of its competitors.

The medium-term question is: “who will buy Yelp?” An acquisition is all-but inevitable (I wouldn’t foresee a public offering). The challenge with a valuation like that is that many of the would-be buyers either in the YP or newspaper industry are really suffering at the hands of both the economy and the public markets.

What do you think?


Here’s an interesting post from Marchex’s Matt McGee on reciprocal linking between Yelp and Yahoo!


5 Responses to “Yelp Raises $15 Million in Round Four”

  1. Ross Hill Says:

    They will probably be acquired, I agree – but there is plenty of room for growth before that happens.

  2. ian Says:

    what kind of growth? in reviews? uniques? last time i checked sustainability meant something.

    the post on TC was updated with revenues for Yelp: “rumored to be sub $10 million/year.” i’m sure opinions about this fall in two camps: a) revenue doesn’t matter, they’ll be acquired by an IYP/FIM/facebook (provocative?) or b) they are building a foundation to run their own sales channel, complete with 100s (or more?) of sales reps. While (b) is extremely painful and costly, it works for the yellow pages. (A) i think depends on how much one is a believer in web 2.0 “the money will follow…”

  3. Andrew Says:

    i agree… i would think that Yelp is seeking acquisition… going public on $10 mil per year rev and $200 mil valuation casts some doubts.

  4. Yelp, Local Online Leader, worth $200M? at Ghost of Midnight Says:

    […] Greg Sterling offers… Yelp’s success is about its “personality” and “transparency.” The site has managed […]

  5. Will Yahoo Propose to Yelp? — eClick Performance Blog Says:

    […] This same TechCrunch article mentions Yahoo Local as one of Yelp’s leading competitors. Greg Sterling’s take on the new financing was that it meant an acquisition was “all-but inevitable” but that […]

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