The valuations are a reality. The kind of company RTG is forming has no start up public companies in it.
The private companies valuations (Facebook/Twitter/Foursquared) go through the roof because of access to users/consumers and their ability to affect markets. FB just recently became public as we all know. Very unlike manufacturing/commodities markets of the micro-cap market. The upside is far greater, the valuation is far greater. The macro-music/fashion/sport/entertainment model the company is forming has upside potential which is exponential.
Digital Media/social company/Music start up valuations
The info below is music start up funding as backdrop to the whole issue of valuation.Notice some companies without revenues get valued by the multi millions. Quite massive valuations in this sector. http://www.digitalmusicnews.com/stories/062411funding2011