Companies of note on this list are Webkinz, the purveyors of virtual pets, valued at an estimated $2 billion dollars; Habbo, makers of Habbo Hotel, valued at $1.25 billion; and Linden Lab, the hosts of Second Life, valued at $1.1 billion dollars. If you're wondering about how they've come up with these valuation numbers, they explain their methodology, which essentially consists of four main components: implied valuations in recent financing, financial performance, market share and market size, and growth rate.
The Webkinz model is well-supported by now; it's essentially Beanie Babies in digital. Habbo Hotel is doing well enough to almost become a household name. Second Life gets the lion's share of public eyes on it by being the target of everyone's assumptions. Honestly, we're surprised that all three of these companies are still privately owned. Any bets on how much longer that will last?