A group of VCs recently invested $138 million in Gilt Groupe, giving the company a valuation of $1 billion despite the fact that the site hasn’t made a profit since its launch in 2007. As companies like Skype and Groupon also pull in huge valuations, The Wall Street Journal says that Gilt has become a “litmus test for the dot-com boom: Is this company really worth $1 billion?”
One analyst doesn’t think so. “I'm a bit of a doubter,” Andrew Jassin, co-founder of Jassin Consulting Group, which works with brands that sell to Gilt, told the WSJ.
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