Top VC Recipients of 2009 (so far)

Valuations of web companies are the weirdest thing in finance.

I think the reasoning goes something like this: if they become profitable, they'll be massively so because many costs that the maker of a physical product has to contend with do not exist.

That doesn't give the beginning of a clue on how to become profitable in the first place though, and there's the catch.

Another way you could look at it is like this: Twitter, who produce a service used globally by millions of people every day raised $139M, while Tesla, who produce an object that only a handful have ever seen and even fewer will ever buy is getting 1M less to try to take on some of the largest industrial conglomerates in the world.

Something is wrong with the picture, but which of those two are more likely to make a good return on the investment could be debated for quite a while...

I believe these are just 2009 investment rounds... from what I understand, Tesla has actually raised close to $800 million total if you count debt financing. Twitter's is still less than $200 million total.

That may be YC bias.

If you instead looked at every VC funding above $1m in the US I wonder how many of them would be in Califronia.

I think it would be more than 90%.

It's not just California - it's specifically Silicon Valley.

Here's the PWC MoneyTree data for Q2 2009: https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=region