Yelp Raises More Money for Business Stuff and Parties

TechCrunch is reporting that Web 2.0 local reviews service Yelp has raised $15 million in a fourth round of funding led by DAG Ventures. The rumored valuation: $200 million.

The funding would take the company, which was launched in 2004, to $31 million in total funding. According to TechCrunch, “Yelp says that they will be using the money to expand geographically, add onto their sales team, and establish a second office in New York City.”

I like local reviews services and one could probably argue that Yelp is a decent player in the space. But for a company whose “revenues are rumored to be sub $10 million/year,” $31 million in funding and a $200 million valuation do not make sense.

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Where is Your Money Now?

Time Warner shareholders might be asking themselves that question if the rumors around AOL’s possible $200 million acquisition of Where Are You Now? (WAYN), a UK-based social network for travelers, are valid. With $4.5 million in annual revenues and 3.6 million unique visitors in November according to comScore, a nine-figure acquisition of WAYN would seem to provide a disappointing answer: the shitter.

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Social Network for Language Learners Raises $6 Million

In my new column, Bubble Watch, I will highlight what I see as signs of the growing bubble commonly called Web 2.0.

Washington-based LiveMocha has raised $6 million in a first round of funding led by Maveron Equity Partners. As described by PaidContent:

The site offers lessons that users can sign up for, as well as the ability to converse with other users for practice. Members can also offer tutoring services using the site. The site, which launched in September, is hoping to offer an alternative to traditional at-home language learning packages that come on CDs or CD-ROMs.

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