Make it something like $400/user. Having been an insider of 3 "Internet startups" in the past, I am assuming a 1:10 ratio of real active users vs total number of accounts in the database. BTW investors always asked us about the number of active users, followed by a question of "how do you define active"? Something like "logged into his account at least once within last week" is considered a very good measure of an active user.
It's simply ridiculous. Maybe we'll soon see a return to the dotcom tactics of alladvantage,themutual etc,etc - Pay people to become your "Users" so you can get more funding.
You can't ignore growth though. In many cases it's much more important than current active users. A product with 1mil active users and a 10x growth rate is much more valuable than a product with 5mil users and a 2x growth rate. The same calculation applies to stock valuations. A stock isn't priced by current earnings, but by expected future earnings.
