A follower of my blog recently asked me this question:
“In your opinion, what is the market value of the companies that offer crowd sourcing solutions? I mean smaller players that work within one nation or with a couple of larger organizations as well as bigger players like innocentive.”
This is a tough question in general and even harder for me as I do not know much about valuation.
What I can do is to offer some comments related to the valuation of such companies:
• I have seen endless numbers of such small companies around the world over the last years. Many of them are not sustainable and will either close or become small consultancy firms
• There is a need for consolidation in the industry and we will see the bigger players get even bigger. An example is the Spigit and Mindjet merger / takeover.
• The last 5 years have been tough and we still need to see how profitable this niche industry really is.
The person who asked the question would very much like to have a discussion on this. Now, you got my starters. Please share your views.