Social Networks - a Bubble but Just Getting Started

Facebook's acquisition of Instagram has raised a few eyebrows but also has plenty of VC's and entrepreneur-wannabes salivating. If a 2-year old company with 13 employees and no revenue can be worth a billion dollars, well then the sky is the limit! As long as you are in the right space.

Since any of the staid cashflow or income-based models do not apply to this amazing growth sector, we need a brand new way of valuing such companies. One way people are looking at the recent acquisition