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August 23, 2006
Grouper Acquisition, A Quick Flip For T-Online Ventures
Sony has acquired Grouper Networks, which runs a popular video sharing site that exploits peer-to-peer technology, for $65M, a deal that gives a European corporate venture capital fund a quick exit on one of its recent investments.
According to ipdemocracy blog, T-online Ventures invested $1.75M last December, as part of a total of $5.25M Grouper raised since founding in 2004.
The venture capital arm of Deutsche Telecom is not exactly known for cultivating the fine art of the quick flip, but in the case of its investment in Grouper, a Silicon Valley-baesd , it got one.
VC Ratings blog has some good background on other deals in this category.
The price Sony paid is not bad for the amount of VC reportedly raised and the time to exit, but the size of the deal will not be wowing other venture capital firms, who need to eventually sell their investments in consumer oriented video publishing sites for a lot more than that, at least 5 times, in order to make an impression on their fund's performance - depending on the size of their fund, that is.
Read - Sony Buys Online Video Sharing (vc ratings)
Read - Upstart Grouper Lands Funding from Deutsche Telekom (ipdemocracy)
Posted on August 23, 2006 06:39 AM | Posted to Venture Capital | Web 2.0 | Permalink
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