Damn -- Only Got 2 Times My Money
By: Mathew Ingram
Mike Arrington has a post up at TechCrunch about Parakey, the embryonic startup that featured Mozilla whiz-kid Blake Ross as a co-founder.
According to Mike, some of the VCs who put money into Parakey are miffed that they only got cash after Facebook bought Parakey, while Ross and his co-founder got Facebook stock, which could be worth millions. Says Mike:
"The acquisition price, say two sources close to the deal, was paid in cash and was less than $4 million, providing investors with just a 2x return on their investment."
This is how bizarre things are in Silicon Valley: Venture capitalists put money into an early-stage startup, and double their money in just six months, while the guy who sells his company gets no money at all " just stock in a company that might someday be bought or go public with a (theoretically) multibillion-dollar valuation. And the VCs are the ones who are pissed.
Tag: Parakey, facebook
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About the Author:
Mathew Ingram is a technology writer and blogger for the Globe and Mail, a national newspaper based in Toronto, and also writes about the Web and media at www.mathewingram.com/work and www.mathewingram.com/media.
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