It was a time when white shoes business venture, Kleiner Perkins Caufield & Byers, was money first hot new business creation which defines the categories. Nowadays, it seems that do so, the company Canada road is best can try edge its way into hot Internet start-up to a massive premium. A good example is the recent funding for Twitter. VOLATILE leads an investment of 200 million towers which platform values the rapid growth of social information, Twitter a sum exorbitant 3.7 billion. At this price, assuming that some, if not all previous investors participated in the round, volatile obtained between 4 and 5 percent of Twitter.
Now perhaps main partner of the volatile John Doerr would pull a comment archives. He said that "I rarely paid so much for so little of a company," when referring to the beginning of the volatile investment in Google. And at a time when the volatile was a real kingmaker Internet.
But this is not the first time, the firm has contributed to a piece of warm startup. Even if the company speaks its Zynga connection, he had to spend big to crush this party. The company recently launched sFund 250 million (Social Fund), a way for them to a foot in quick resume the digital media industry movement and social.
It is a striking contrast to the days when he supported Sun Microsystems, Genentech, Compaq, Netscape, Amazon, Google and @ home networks - companies that defines their categories but also created entire industries. The new social revolution has adopted the mantle of investor uber on Fred Wilson based in New York Union Square Ventures (Twitter, Etsy, Foursquare) and Accel Partners (including investments include Facebook and General).
As an investor, it must be at the beginning of tracking trends, particularly in the field of the Internet, where things morph to reduce speed. Talk of the third wave in 2010 is the kind of suddenly discover Lady GaGa today. But volatile is not much choice. As we wrote earlier, volatile takes a hairpin turn sharp hair high speed is trying to change its impetus for Internet and digital media investment-specific technology investment. Hiring Mary Meeker was the right move, now with Twitter, investment fund is betting that it will regain its stamp?
Nevertheless, to Twitter, this money is going to be useful, especially it has tried to expand its footprint and takes a much more important role. The San Francisco-based company is growing at a great clip, but it must devote to its scaling and at the same time solve the dilemma of a business model. He was not properly understood where sales (and profits) will come.
Yesterday, Erick Schonfeld has pointed out that Twitter could be seen a slower growth in United States, who is not a good sign, whereas the United States (and Europe) continue to be the Internet markets only monetizable. Twitter, I wrote earlier, will see significant growth in emerging economies of the Internet as the India, the Brazil and the Indonesia in the coming years, which is not enough for businesses in the United States monetizable.
However, as long as there are people looking to spend heavily to hang with the cool kids, trio of Twitter co-founder Evan Williams, Biz Stone and CEO Dick Costolo do not have much to worry about.
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