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Mint.com is worth $2 billion dollars.

Mint.com is a web 2.0 website that allows users to track their personal finances. From techcrunch here is a more detailed description of the site:

Mint is a personal finance application that lets users track and monitor their financials in one place without the need of routine maintenance or accounting knowledge. Their application tracks bank, credit union and credit card transactions and alerts users to upcoming bills, low balances or unusual spending. Mint’s patent-pending technology automatically categorizes transactions, so users know with precision where they are spending money, what their bank and credit balances are, and how much interest they have earned.

Although mint.com is a new site, it has EXPLODED in popularity. Just check outs its Alexa graph ,which shows a nearly tenfold increase in reach in the past year:

Mint.com already has a huge userbase, and has the potential to revolutionize the way people manage their finance. Mint.com could easily be the next smartmoney.com, fool.com, quicken or quickbooks. The potential for growth and revenue is unlimited.

I arrive at the $2 billion dollar figure because mint.com already has already seized the majority of the ’social finance’ marketshare, which could easily be a $10-100 billion dollar industry in the next decade. Mint currently has over 160,000 users and it adding 10,000 users every week, which is extremely impressive for a company just a year old.  Also, no other company can compete with mint.com because mint.com already has such a large lead. Trying to compete with mint.com would be like competing with Google or the IPod. In addition, wouldn’t be unreasonable if mint.com’s revenue exceeded $10-20 million dollars a year by 2010, with its revenue doubling ever year.

If mint.com were to go public this year, would it be too far fetched to assume that its market cap would exceed at least a billion dollars in its first day of trading? I think not. Funds and institutions are more than willing to invest hundreds of millions of dollars in the future of social finance.
Therefore for the reasons above a $2 billion dollar valuation is far from bubble territory, but it is in fact very reasonable.

We are in a new era of web 2.0 and smartism. Web 2.0 companies aren’t just websites but entire media entities such as CNN or Fox News with huge userbases and huge revenue growth. Mint.com isn’t just a financial website, but a financial media company with millions of potential users that can be monetized.