The SAI 50+: World’s Most Valuable Internet Startups

Silicon Alley Insider, October 28, 2009

Estimated Value: $80 million

Business: Professional online video network

Location: New York, NY

More Info: About Next New Networks

CEO: Lance Podell

Investors: Goldman Sachs, Spark Capital, Saban Media Group, Pilot Group, Bob Pittman, Fuse Capital

Analysis: Next New Networks’ syndicated Webisode model is a tough one to pull off. The company must make cheap but compelling programming, then convince advertisers of the value of selling sponsorships on that content across multiple distribution points like YouTube, Blip.tv, Yahoo, and many other portals.

Still, the company appears to be making a lot of progress toward that goal, consistently growing its audience and advertiser base with high-rate product-placement packages.

We estimate about $8 million in revenue this year (which admittedly may be on the aggressive side) and apply a 10-times multiple to come up with a $80 million valuation.