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April 06, 2006
Estonian Founder To Expand Popular Youth Portal Internationally
We followed up a news item that we eyed on PaidContent yesterday about an equity investment in the company behind Rate.ee, a popular youth-oriented portal in Estonia. And had an email interview with Andrei Korobeinik, who created the site.
Korobeinik confirmed that EMT paid €2.5M for a controlling stake in the new company, Serenda Invest, set up to hold rate.ee. Korobeinik owns 49%.
The price paid by EMT for its stake implies a company valuation of €5M, which translates into €13 euro per user. Alternatively, the valuation as a multiple of profit is about 16 times profit.
The deal was a windfall for the young entrepreneur who plans to use the capital to expand his user-generated content and portal concept (he retained rights to the platform for international use) across the border into other countries. He has already launched Baltic region portals, Face.lv and Point.lt.
Rate.ee is the most popular internet site in Estonia, says its creator
The Estonian portal has 360K registered users. It generated a profit of €300K on €400K in sales last year, according to Korobeinik.
If he can translate the concept's popularity across borders, then Korobeinik will have the foundation for a healthy business with an enviable margin.
Read - EMT Buys Majority In Estonian Portal (paidcontent)
Posted on April 6, 2006 09:43 AM | Posted to Online services | Venture Capital | Permalink
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