Is Reputation.com going out of business?

7982
SHARE

Venture capitalists don’t look for returns of 1x, rather they look for the 15-20x returns from the likes of Facebook, Twitter, and other leading tech giants.

At the end of the day, no matter what technology service offerings Reputation.com deploys, the core service offered for reputation management is SEO related content.   And SEO related content businesses are, at the end of the day, typically do not exit for high multiples.

In order to avoid the disasterous publicity of a bankruptcy, my prediction is that Reputation.com will turn into a zombie VC backed company that generates nominal profits and/or sell part of its technology for substantially less than what its investors are looking for.  The reports of 40%+ turnover rates along with the revolving door of management are typical signs of a failing tech company.