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Web Start-Up Values Soar Investors Bid Up Internet Firms to Levels Reminiscent of the Last Dot-Com Boom

The technology-heavy Nasdaq Composite Index is relatively flat this year. Yet tech company valuations are rapidly rising in one area: closely held consumer Web firms.

Venture-capital investors and others have been bidding up the valuations of consumer Web start-ups this year, particularly of the firms that show the most user traction. In an echo of the 1990s dot-com boom, some investors also are giving lofty valuations to Web firms that have no revenue and that barely have a product out.

By PUI-WING TAM

Full Story: http://online.wsj.com/article/SB10001424052748704285104575491794083009542.html?mod=WSJ_hpp_MIDDLETopStories

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