<![CDATA[Valleywag: Sequoia Capital]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: Sequoia Capital]]> http://valleywag.com/tag/sequoia capital http://valleywag.com/tag/sequoia capital <![CDATA[ School of Engineering offers computer science courses free online ]]> Leland Stanford, Junior University has released lecture videos, transcripts, handouts and assignments for ten undergraduate engineering courses including computer science and artificial intelligence. Stanford Engineering Everywhere, as the program is called, is being funded by Sequoia Capital. While a few rightsholders didn't grant permission to release materials, what has been published is available under a Creative Commons non-commercial license meaning that any student or educator can use the material as they see fit. I, for one, can't wait to see bass-heavy remix mashups of Professor Brad Osgood's lectures on linear systems and their applications. Soulja Boy had better watch out when new dance craze "The Fourier Transform" sweeps the nation.

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Thu, 18 Sep 2008 08:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5051675&view=rss&microfeed=true
<![CDATA[ Sequoia investment BlueCollarOrDie dies ]]> Investors — including top Valley VC firm Sequoia Capital — plan to kill FunnyOrDie spinoff BlueCollarOrDie, recently relaunched as Kung Fu Todd. Veteran TV producer and investor Larry Lyttle blamed the Internet for not attracting enough of the right kind of audience — people who like jokes that begin with the phrase "You might be a redneck." Lyttle told The Hollywood Reporter the site draws only 20,000 unique visitors per month. Our theory as to why is less complex even than Lyttle's: It's just not very funny. Check out "Hot Teacher," the site's "most buzzed" video and see for yourself.

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Tue, 22 Jul 2008 12:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5027762&view=rss&microfeed=true
<![CDATA[ LinkedIn needs to sex up its pitch if they want a Facebook-sized valuation ]]> LinkedIn's $1 billion valuation certainly seems low only when compared to the stratospheric $15 billion Facebook is worth on paper. One reason why is because, frankly, college kids are sexy — as the VCs in the announcement infomercial prove irrefutably, business professional who use LinkedIn are not. So if you're going to announce a new round of venture capital with a video on YouTube, why not make it a music video? The kids love music videos. Hence, Valleywag presents "The Upside" featuring Jeffrey "Sand Hizzy" Glass, David "D-Cup" Sze, David "Dollar Billz" Cowan and Mark "Make Money" Kvamme over beats from EPMD. Recognize.

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Wed, 18 Jun 2008 07:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5017452&view=rss&microfeed=true
<![CDATA[ Will Ferrell's FunnyorDie takes HBO for up to $10 million ]]> Comedy-video startup FunnyorDie, a project cofounded by yuksters Will Ferrell, Adam McKay and Chris Henchy with Sequoia Capital's Mark Kvamme, has sold an equity stake to HBO of less than 10 percent. (FunnyorDie was valued at $100 million after the last round of funding; the new valuation, and HBO's exact investment, wasn't disclosed — if you know, please tell us.) In exchange, HBO also gets five hours of programming from Ferrell, McKay, Henchy and recent addition Judd Apatow.

It's an interesting deal for Hollywood, where traditionally people don't get out of bed unless there's cash money on the table. With more stars, producers and writers moving into venture-backed deals like FunnyorDie's, you might see more hot names demanding that studios and networks invest in their startups as part of other deals. It may be the only way Ashton Kutcher can keep Ooma alive.

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Wed, 11 Jun 2008 12:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5015506&view=rss&microfeed=true
<![CDATA[ Serge Faguet is not happy to see you ]]> Remember Serge Faguet, the fired CEO of Sequoia-backed startup TokBox? He's got a startup in stealth mode, according to LinkedIn, but from the looks of this photo sent by a tipster, he's not working especially hard. (Faguet's at left, pointing, in the blue shirt.) Can you suggest a better caption? Do so in the comments. The best one will become the new headline. Yesterday's winner: "You said there would be girls here," by our own Fake Michael Arrington.

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Fri, 06 Jun 2008 16:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5014119&view=rss&microfeed=true
<![CDATA[ How Mark Zuckerberg missed his meeting with Sequoia ]]> Sequoia Capital never invested in Facebook. But Sequoia partner Mark Kvamme said at an ad conference today that the venture firm did take a meeting with founder Mark Zuckerberg early on. Problem was, according to Kvamme, Zuckerberg had forgotten about the appointment and woke up just before it started. So Zuck showed up at the meeting and made his pitch wearing pajamas. Sequoia passed — perhaps understandably, but definitely unfortunately, Kvamme told the crowd. "You kind of have to look past those things," he said. One could say the same about Kvamme's rewriting of history. We hear it's Facebook that passed on Sequoia — mostly due to a feud between the VC firm and Facebook backer Peter Thiel. (Photo by sunshinecity)

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Wed, 28 May 2008 16:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393780&view=rss&microfeed=true
<![CDATA[ Sequoia's Michael Moritz: VCs need to stop with the "hot air and arrogance" ]]> Michael_Moritz.jpgAfter reading our take on VC blogger Fred Wilson's advice that entrepreneurs need to learn how to "ask for the order," Persai cofounder Ted Dziuba commented: "Methinks Fred Wilson doth blog too much." We disagree, if only because Wilson is such a fruitful source. But at a venture capital conference in San Francisco last week, Sequoia Capital's Michael Moritz seemed to second the notion. "There's a lot of hot air and arrogance in the business that we all would be better off without," Moritz told the conference crowd. Moritz said he disapproved of "useless pontificating in front of entrepreneurs working harder than we are." Kleiner Perkins VC John Doerr concurred: "At Kleiner, we're trying to watch our language." This from the guy who said the Internet was underhyped — and then invested in Friendster. (Photo by b_d_solis)

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Mon, 12 May 2008 08:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=389489&view=rss&microfeed=true
<![CDATA[ Happy birthday, Will Ferrell's Funny Or Die! Hope Sequoia gives you more funding as a present ]]> After 200 million views and 30,000 video uploads, Will Ferrell's Sequoia-backed Web video venture Funny Or Die turned one year old last week. Despite early successes, however, the site seems caught in a downward trend. Compete reports it lost 6.9 percent of its audience in March and that the site's best month was its first.

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Mon, 21 Apr 2008 10:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=382068&view=rss&microfeed=true
<![CDATA[ Fired TokBox CEO didn't need to know HTML to drive his $80,000 BMW ]]> 650i.jpgEarly last month Sequoia Capital fired TokBox founder Serge Faguet as CEO. An engineer who spoke with Faguet for a job interview tells us his firing "comes as no surprise." The tipster, perhaps sore that his job interview didn't go so well, characterizes Faguet as "rude and arrogant" and argues that the original idea for TokBox came from cofounder Ron Hose. But mostly, our tipster objects to Faguet's car: a BMW 650i.

It's hard not to notice Serge's brand new, white BMW convertible that he drives around. A 650i costs $82,000 base, and one can only imagine how jealous and frustrated the rest of the team is when they are working long hours and someone with no knowledge of technology (he can't even program in HTML) has a substantially higher equity stake yet offers nothing substantive, and still splurges on a new sports car.
Want to see a vehicle like Faguet's in action? Here's a clip:


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Tue, 01 Apr 2008 10:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=374601&view=rss&microfeed=true
<![CDATA[ Sequoia clones unsuccessful search engine -- maybe Google will buy it anyway ]]> Searchmevideothumb.jpgSequoia partner Mark Kvamme just plunked down $31 million on a company he also chairs, called Searchme. It's an image-based search engine. Search is a crowded field but Searchme CEO Randy Adams thinks there's room for innovation. "Search," he told BoomTown, "is still largely a text and list experience." True, but Snap CEO Tom McGovern told me almost the exact same thing in May 2006. Didn't work out for him. Now Snap is a site for bloggers. Below, a video demonstration of Searchme's "innovation" and another video showing two-year-old Snap doing pretty much the same things.

Searchme may remind some of Apple's iTunes Cover Flow feature, but if it's more likely to succeed than Snap that's not why. Snap was search-ad innovator Bill Gross's brainchild. Good genes. But Searchme's Sequioa roots are better. Sequioa funded Google, which is known to return the favor from time to time.

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Tue, 11 Mar 2008 11:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=366502&view=rss&microfeed=true
<![CDATA[ Tokbox CEO fired ]]> Serge FaguetSequoia Capital is famous for firing founder CEOs. Its latest victim: Serge Faguet, who's out as CEO of TokBox, we hear. The video-chat service raised $4 million from Sequoia last year. (Photo by Noah Berger/New York Times)

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Tue, 04 Mar 2008 16:10:14 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=363844&view=rss&microfeed=true
<![CDATA[ Plaxo torn between two lovers? ]]> plaxo.pngIs Plaxo going to Google, as some rumors have it? Possibly. We hear Joe Kraus, a Google executive knee-deep in its effort to catch up in social networking, skipped the company trip to Disneyland this week so he could finish a deal. But other insiders say Google's not doing a deal with Plaxo. Another plausible bidder: Comcast.

The cable giant has been an active buyer of startups recently, and Plaxo already runs its online address book. Whoever buys Plaxo is likely to be after its engineers and its Pulse social network, not its legacy address-synching business. That's what we hear drew Facebook's interest. But Facebook has, as far as we can tell, dropped out of the bidding for Plaxo.

Facebook's cash is reserved for a massive datacenter expansion. And a stock deal would bring Sequoia Capital into Facebook as an investor. We hear Sequoia is keen on that prospect. Facebook's investors — a group which includes Plaxo founder Sean Parker, whom Sequoia forced out of the company — are not as sanguine about such a scenario.

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Thu, 07 Feb 2008 17:39:44 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=354073&view=rss&microfeed=true
<![CDATA[ One day left to commission portrait of "Fellowship of the VCs" ]]> FellowshipoftheVCs.jpg "Are you a leader in Silicon Valley who has been unfairly left out of this work of art?" asks a project proposal on Strayform."Much like patronages offered by the leaders depicted in historical works, your patronage can earn you the recognition you deserve."

So far, the people deemed worthy of such recognition include Intel Capital's Eghosa Omoigui, Sequoia Capital's Roelof Botha, TechCrunch's Michael Arrington and angel investor Ron Conway. Each is depicted in the group portrait on the left. But people, forget Silicon Valley leaders. It's the rest of us who deserve to see this project through to its completion.

The painting, tentatively titled "Fellowship of the VCs," will draw its artistic inspiration from a timeless, classic source: Lord of the Rings movie posters. How is that not the most wonderful thing you've ever heard? There's only one day left to make your pledge. Make it now, or be forgotten by history, people.

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Wed, 30 Jan 2008 10:22:18 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=350649&view=rss&microfeed=true
<![CDATA[ HealthCentral takes cash from Barry Diller, Michael Moritz ]]> healthcentral.jpgHealthCentral just announced $50 million in funding. The round included a major investment from IAC and smaller contributions from prior investors Sequoia Capital, Carlyle Group and Polaris Venture Partners. HealthCentral operates several health-related websites, including the long-troubled DrKoop.com, which was once a publicly traded company a bubble or two ago. Here's how their traffic looked last year, according to Compete. It's nice and all, but stick around for the one comparing HealthCentral to WebMD. If I used the word pwnage, I would. But I don't.

Here's HealthCentral.com and its other sites.
And now, versus WebMD.
Looks pretty bad for HealthCentral, but it's early yet. The site only changed its name to HealthCentral in 2006.

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Fri, 25 Jan 2008 13:20:36 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=349074&view=rss&microfeed=true
<![CDATA[ Julia Allison canoodles with Sequoia moneyman ]]> juliaallison.jpgA tipster spotted the female half of Gawker's (and Valleywag's) favorite ex-couple, Julia Allison, leaving a CES party in Las Vegas with venture capitalist Mark Kvamme of Sequoia Capital. Kvamme, who was a frequent target of Valleywag emeritus Nick Denton, is responsible for Sequoia's investments in promising companies like LinkedIn. Oh, and also AdBrite.

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Wed, 09 Jan 2008 04:14:38 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=342651&view=rss&microfeed=true
<![CDATA[ Is Plaxo ready to sell to Facebook? ]]> Mike MoritzPeter ThielIt's curious that rumors of a Plaxo sale exploded at the same time that Robert Scoble got his Facebook account suspended using a secret, unreleased tool for extracting data from Facebook. Curious, too, that Plaxo is so eager to milk the incident for good PR. While a battle of words takes place in public, we hear that quieter talks are happening behind the scenes: A sale of Plaxo to Facebook. A clash between the companies' backers, though — the powerful VC Michael Moritz and the rising VC star Peter Thiel — could sink any deal.

Technically, the sale makes sense. Plaxo's chief platform architect, Joseph Smarr, is an engineering rock star, with many fans among the Valley's brainiac collectors. And Facebook CEO Mark Zuckerberg is said to admire other members of Plaxo's engineering team. The process of synching multiple address books, Plaxo's specialty, is more complex than it sounds, and would save Facebook some trouble as it tries to become more of a hub for its users' online activities on and off the Facebook site.

Bringing the investors to terms, however, would prove troublesome. Michael Moritz, of Sequoia Capital, is said to be eager to get a stake in Facebook, however small, so it can claim to have had a hand in its success. It's a move he played skillfully in the first bubble when he merged a failing online bank, X.com, into Peter Thiel's PayPal.

Thiel, now a Facebook board member and venture capitalist in his own right, remembers that maneuver all too keenly, and believes Moritz got the better of him in the deal. Then, too, Moritz forced Sean Parker, now a partner in Thiel's Founders Fund, out of Plaxo; he next joined Facebook, and while he didn't stay long, he still owns a substantial stake in the company. Any deal that reunites Sequoia, Thiel, and Parker would produce a moment of boardroom drama the likes of which we haven't seen in a long while.

The talks aren't advanced, and haven't even reached the point of naming numbers. But Facebook's lofty $15 billion valuation gives it a currency for acquisitions. Will Plaxo take Facebook's paper? The decision, if it ever comes to that, will rest in part with Thiel. How delicious it would be to have Moritz at a disadvantage.

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Fri, 04 Jan 2008 06:30:20 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=340451&view=rss&microfeed=true
<![CDATA[ Kayak and Sidestep merge, plan for IPO ]]> KayakLogo.gifTravel search engines Kayak and Sidestep will merge to form a new company, according to reports. As part of the deal, Kayak raised another $196 million from current investors Sequoia Capital, General Catalyst Partners and Accel Partners as well as from Sidestep investors Norwest Venture Partners and Trident Capital and new investors Oak Investment Partners and Lehman Brothers Venture Partners. The merger will create the fifth largest online travel destination. That sad boast might make you wonder, how'd they get so many VCs on board?

The same way flatlining startups always do: the promise of an imminent IPO. Or at least that's what Trident Capital's Woody Marshall told VentureBeat.

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Fri, 21 Dec 2007 10:40:16 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=336636&view=rss&microfeed=true
<![CDATA[ Will Ferrell's Funny or Die gets another $15 million ]]> Funny or Die, the humor video site from Will Ferrell and Blades of Glory director Adam McKay, started up last April with only $17,000 from Sequoia Capital, according to a profile of the company in Portfolio. After "The Landlord" got 50 million views, Sequoia and a pair of unnamed institutional investors came back with another $15 million in funding. Though Funny Or Die expects to gross "a few million" next year, as Sequioa partner and Funny Or Die cofounder Mark Kvamme told Portfolio, prospects aren't perfectly shiny for the funny site.

Problem is, despite attracting talent such as Bill Murray, Jenna Elfman, John C. Reilly, Jimmy Fallon, Jeremy Piven, John Mayer, and a writing staff of 30, "The Landlord" remains Funny Or Die's only real hit. This despite 16,000 subsequent efforts by the company and its users. In fact, the video's sequel and the site's second biggest hit, "Good Cop, Baby Cop," (see above) garnered just a tenth as many views.

"I kind of wish we'd released 'The Landlord' today and not last spring," Kvamme told Portfolio. "The site was nothing then, and now it's a robust thing."

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Thu, 20 Dec 2007 11:40:44 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=336291&view=rss&microfeed=true
<![CDATA[ AdBrite makes clean break with porn-ad partner ]]> How eager is AdBrite founder Philip Kaplan to get into the porn-ads business? So eager that he's counting the seconds. On AVNAds.com, the relaunch site for AdBrite's partnership with porn-trade publisher AVN, there's a splash page announcing the move to Black Label Ads, a new website wholly owned and operated by AdBrite, in less than two days. We hear that making a clean break with AVN — without the acrimony of past attempts to split up — was a requirement before Sequoia Capital and other investors put in their latest investment, a $23 million financing round for the online ad network. Not that investors have entirely quelled their concerns about AdBrite being in the porn business. The new site, Black Label Ads, attempts to disguise the AdBrite connection — except in its legal agreements.

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Thu, 29 Nov 2007 17:32:22 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=328275&view=rss&microfeed=true
<![CDATA[ AdBrite, the San Francisco-based online ad ... ]]> AdBrite, the San Francisco-based online ad network, raised $23 million as disclosed in a regulatory filing found by PE Hub. Sequoia Capital, previously a backer, continued to invest in this round, along Artis Capital Management, a hedge fund which is relatively cozy with the Sand Hill Road giant. [PE Hub]

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Thu, 29 Nov 2007 13:11:29 PST Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=328127&view=rss&microfeed=true
<![CDATA[ At Meebo party, everyone's measuring themselves ]]> For two years running, Meebo has allowed you to skip the software download and log onto instant messenger using your Web browser. Never mind that you can already do this! The startup celebrated its second anniversary of AIMlessness at Pier 38 last night with a cake, open bar and a giant game of Guitar Hero. (Pictured above, tech consultant gadabout Dave Matthews — no, really, that's his name — jams on the imaginary Fender.) And really, though no one at Meebo will quite say it this way, they've figured out they need more of a purpose in life. That's supposedly coming from the new Meebo platform, which will allow third-party developers to create applications for integration into Meebo's service.

For an example of Silicon Valley incest, look no further than the guest list. Meebo founder Elaine Wherry is engaged to Plaxo cofounder Todd Masonis. The other Plaxo cofounder, Cam Ring, is dating Sandy Jen, another Meebo cofounder. Meebo CEO Seth Sternberg was an intern at Plaxo during business school. RockYou cofounder Jia Shen's brother, Jian, works as an engineer at Meebo. Members of all three companies have played on the same Ultimate Frisbee team since before their companies were launched. Oh, and they're all funded by Sequoia Capital.

Which would explain the presence of Sequoia's newest golden-boy partner, Roelof Botha, at the event. He stood out in his suit jacket and had an aura around him as green as a dollar. He walked around the room and every startup founder tensed, worrying that they would somehow screw up in his presence.

When they weren't worrying if they measured up for Botha, people were talking about how Meebo's platform measured up to Facebook's. The answer? Not really. The other source of conversation was the upcoming Google platform announcement, which TechCrunch revealed would be pushed back from its original date of November 5, but we now hear is set to be on time, if not early.

I should say Google's platform wasn't really a topic of conversation as it was a conversation killer. When stuck with a boorish biz devver from a widget maker, the easiest way to make my escape was to bring it up. When asked about that platform, the responses ranged from "I can't talk about that" to wild, blinking, stares. According to one anonymous founder type, at least one company "got in trouble" for revealing details. When asked for details, he backed off the subject, fearful of the long arm of Google.

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Tue, 30 Oct 2007 14:36:55 PDT Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=316614&view=rss&microfeed=true
<![CDATA[ Facebook CFO Gideon Yu never, ever sleeps. ... ]]> Gideon YuFacebook CFO Gideon Yu never, ever sleeps. He's helping the social network raise another $500 million, on top of Microsoft's $240 million, from two hedge funds, at the same rich $15 billion valuation. Word is that some venture-capital firms were interested in buying into Facebook so they could get some of the buzz, but were priced out of the financing round. I wonder if Sequoia Capital, shut out of earlier Facebook rounds, was still trying this time. [The Secret Diary of Steve Jobs]

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Wed, 24 Oct 2007 21:03:07 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=314842&view=rss&microfeed=true
<![CDATA[ Michael Moritz breaks a sweat ]]> Mike MoritzWEB 2.0 SUMMIT — Sequoia Capital Michael Moritz, the hottest venture capitalist in the Valley, and perhaps the world, is always smooth and comfortable, and his appearance at this conference is proving no exception. Save, that is, when discussing his departure from Google's board. Questioned by author John Heilemann about why he left, Moritz dismisses the notion that Sequoia was backing a secret Google-killer search startup. But his explanations are otherwise unsatisfactory, and he hems and haws in a way he hasn't at any other time in his on-stage interview. My conclusion: Moritz isn't being fully honest here. And that there's a value, in this hypermediated time, to watching the giants of the industry show up in person and explain themselves. And, occasionally, sweat.

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Wed, 17 Oct 2007 17:54:36 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=312179&view=rss&microfeed=true
<![CDATA[ "I assume there will be carcasses strewn ... ]]> "I assume there will be carcasses strewn across the road." — Sequoia Capital VC Michael Moritz, forecasting the future of the Web industry at Web 2.0 Summit. On the cheery side, he says things are not as frighteningly frothy as they were in 1999.

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Wed, 17 Oct 2007 17:38:46 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=312177&view=rss&microfeed=true
<![CDATA[ RockYou wanted to pay $2M to draw on your wall ]]> Graffiti.pngFacebook's platform has captured the hearts of Valley developers and the wallets of Sand Hill moneymen, but still has yet to prove it can make a buck. The question, five months after the Facebook frenzy began, is how much is a Facebook application worth? For an answer, let's turn to widget powerhouse RockYou, the startup known to users for its horoscope application and to backers for an intellectual property scandal which almost cost backer Sequoia Capital its investment. Here's what they thought one high-profile app was worth.

We hear RockYou made a quiet pitch to the developers of Facebook application Graffiti soon after the Facebook platform launched. The offer? $2 million for the viral success story, mere weeks after it was introduced. The most bizarre part of this tale is the reaction from the developers Mark Kantor, and Tim and Ted Suzman: They turned down the offer, presumably because they were looking for a higher payout for their numerous sleepless hours spent coding the time-wasting widget. Think these guys have a bright future ahead of them? Join the team. They're looking for an engineer.

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Tue, 25 Sep 2007 15:31:57 PDT Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=303398&view=rss&microfeed=true
<![CDATA[ TechCrunch40's VC sponsors ]]> A Valleywag tipster whispers that a company that had made the initial cut of 20 companies for the Techcrunch40 conference — back when it was known as "TechCrunch20" — got bumped when conference organizers "doubled down" and expanded the list to 40 startups. The company's sin? Competing with a startup funded by one of TechCrunch40's four VC sponsors. The competitor got bumped, and room was made for a sponsor-backed startup. "Ah, the Valley mafia at its finest," the tipster concludes. Of course. Sand Hill Road was built on conflicts of interest.

If true, then the organizers — Internet entrepreneur Jason Calacanis and TechCrunch editor Michael Arrington — have figured out a very clever hack on the startup-conference business model. Instead of charging startups directly, charge venture capitalists to let their favored portfolio companies in. And throw in a handful of unfunded startups to make it all look above-board. Surely the sponsors — Sequoia Capital, which has backed Calacanis's Mahalo; Mayfield Fund; Charles River Ventures; and Clearstone Venture Partners — would heartily approve of this scheme. It's brilliant. Ingenious. My hat is off to you, Jason and Michael, if you have indeed pulled this off.

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Tue, 18 Sep 2007 09:35:39 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=300996&view=rss&microfeed=true
<![CDATA[ AdBrite, AVN kiss and make up over porn ]]> Philip Kaplan in New YorkPhilip Kaplan seems to have patched things up with AVN, the porn-industry trade publisher with which his company, AdBrite, runs an online ad network for adult websites. Earlier this month, AVN had abruptly yanked the AdBrite-run version of AVNAds.com offline and replaced it with its own hastily-built site for selling ads. In response, insiders said, Kaplan was readying to launch BlackLabelAds.com, AdBrite's own porn-ad network. Now, however, the AdBrite-run version of the network is back online. The spat however, came with a heavy financial price.

Rumors reaching Valleywag from adult-industry sources indicate that Lehman Brothers was weighing a large investment in AdBrite — as much as 10 percent of the company — but decided to pass. That's a heavy blow for both AdBrite and its lead VC investor, Sequoia Capital, which frequently partners with Lehman. The reason for Lehman's cold feet? Apparently, AdBrite's involvement in the porn business was larger than bankers there had been led to believe — a fact that may have been uncovered during AdBrite's recent audit.

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Wed, 29 Aug 2007 14:30:10 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=294857&view=rss&microfeed=true
<![CDATA[ Sequoia expels the Yalies ]]> Yale%20flag.jpgSequoia Capital, the top-dog Sand Hill Road venture capital firm, has kicked out Yale University from its stable of investors, or "limited partners," as they're known in the business. Why? The Ivy Leaguers don't want to participate in Sequoia's international and late-stage funds, just its hot startup money pools. According to a memo obtained by the Wall Street Journal, Sequoia is looking for partners who will pony up a "blank check", not partners who will dictate where their money is spent. No word on if Neil Shen and Chris Olsen, both Yale alumni and Sequoia employees, have gotten dunned by university fundraisers to make up for the shortfall.

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Tue, 28 Aug 2007 15:21:48 PDT Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=294378&view=rss&microfeed=true
<![CDATA[ RockYou's secret rate card for Facebook apps ]]> RockYou's pitchThose who can't do, teach. And those who teach, when it comes to Facebook, are charging handsomely for the privilege. RockYou, a maker of Web "widgets," those Web pages in miniature that clutter up blogs and MySpace pages, has not, apparently, figured out how to make money directly off of the Facebook apps they've created like Super Wall and Zombies. The Sequoia Capital-backed startup has, however, figured out how to make money from Facebook app developers. How? By charging them to sign up users by advertising their apps on RockYou's Facebook apps. The fee? Half a buck per user. It sounds like the perfect Ponzi scheme: As long as venture capitalists and clueless big companies are overpaying for startups based on the number of Facebook users they've signed up, it should work brilliantly. After the jump, slides from RockYou's pitch to fellow application creators.

Rockyou Slide 1"It's all you!" RockYou proclaims. Unless, that is, you're a Facebook app developer too inept to figure out how to get your app embraced by Facebook users.

Rockyou Slide 2Take, for example, Yahoo. Until RockYou came along, Yahoo's music-video app for Facebook faced resounding indifference.

Rockyou Slide 5RockYou has provided such amazing Facebook apps as Horoscopes and Zombies. If you've been "bitten" by a Facebook friend who wants to turn you into a zombie, now you know whom to blame — RockYou.

Rockyou Slide 8Want to sign up users? It will cost you. At the largest volume discount, RockYou charges $0.50 per user signed up. That's roughly comparable to cost-per-click advertising on Google, which would be reasonable if, say, you were actually selling something, as opposed to trying to get people to sign up for your free Facebook app. And how does RockYou expect you to make up the money you've just spent on that user? Why, that's your problem. Perhaps you can charge that much for explaining to another startup how to make money on Facebook.

Full deck here (PDF).

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Mon, 27 Aug 2007 14:33:02 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=293930&view=rss&microfeed=true
<![CDATA[ The house that Google, Yahoo, and YouTube built ]]> Michael Moritz, the most famous venture capitalist in the Valley, has exquisite taste in startups. As a partner at Sequoia Capital, he's greenlighted the funding of Yahoo, Google, and YouTube, among others. But his taste in real estate? I'm too blinded by jealousy to judge, after reviewing pictures taken at Moritz's abode in the uberswanky Pacific Heights neighborhood of San Francisco. The first two, definitely of the venture capitalist's library, were showcased in a New York Times story about the reading habits of megamillionaires. The rest of the bunch? Released by Ryan Associates, a construction firm specializing in high-end remodels. I don't know for sure that it's Moritz's place, but the view in one of the pictures listed under "Pacific Heights Remodel" seems to match the view from one of the Times photos. Got confirmation? Please share. The full gallery after the jump.

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Fri, 17 Aug 2007 16:34:54 PDT Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=290848&view=rss&microfeed=true
<![CDATA[ Philip Kaplan undresses for AdBrite's auditors ]]> Philip Kaplan in New YorkWhy are green-eyeshades types calling AdBrite's customers and asking probing questions about the online-advertising network? The company founded by Philip Kaplan of FuckedCompany fame — pictured here with some friends — might be giving accountants an eyeful for a host of reasons. Let's rule out an IPO: The Sequoia Capital-backed startup, with a rumored $40 million in gross revenues, is still too small to go public. That leaves an acquisition as the most likely scenario. Yahoo, Google, and Microsoft have all bought ad marketplaces recently. But for Barry Diller's IAC, which also owns second-tier search engine Ask.com, AdBrite would be a modest purchase. One other possibility: AdBrite could be making a buy of its own to get more heft. Anyone heard more?

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Fri, 10 Aug 2007 17:29:23 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=288455&view=rss&microfeed=true
<![CDATA[ Facebook's financial fibber-in-chief ]]> Gideon Yu, the two-timerPeter Thiel's behind-the-scenes war with Sequoia Capital continues. The latest battleground? Gideon Yu, YouTube's former CFO, had planned to leave after the Google buyout of the online-video site to hook up with Sequoia as a partner. Instead, he's joining Facebook, the social network in which Thiel is an investor and a board member, as its CFO. It's a loss for Sequoia partner Michael Moritz, who has feuded with Thiel's Founders Fund. But it's undoubtedly a gain for Facebook. The social network, whose board members already like to play fast and loose with revenue figures, needs a CFO who's not above a little white lie. Like, say, YouTube's budget. Or what his career plans really are.

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Tue, 24 Jul 2007 17:19:42 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=282081&view=rss&microfeed=true
<![CDATA[ Sequoia Capital's Michael Moritz waxed ornithological ... ]]> VC Ratings] ]]> Fri, 13 Jul 2007 14:50:00 PDT Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=278386&view=rss&microfeed=true <![CDATA[ An offer Facebook developers can't refuse ]]> Bay Partners, a Silicon Valley venture capital firm, is cutting small checks to startups developing apps on Facebook's F8 platform, VentureBeat reports. Sure, Bay is opportunistically trying to ride on top of the frenzy for apps written specifically for Facebook's user base of 29 million. But Bay's initiative, called AppFactory, is small potatoes compared to what we think Facebook backer Jim Breyer, managing partner at venture capital firm Accel Partners, might be up to.

We're told that Accel is looking at investing in Facebook app developers. Naturally. Breyer's $13 million investment in Facebook two years ago was seen by some as a sign of a building bubble. Now with estimates of Facebook's value ranging in the billions of dollars, of course, rival VCs like Bay Partners are jealous.

But Breyer can't possibly be content with just one home-run investment. It stands to reason that he wants to build a keiretsu — a network of startups which partner with each other to build their businesses and boost their common investor's returns. John Doerr and his colleagues at Kleiner Perkins did this in the 1990s, with AOL, Netscape, Amazon.com, Intuit, Excite; Michael Moritz, at Sequoia, likewise, parlayed his firm's investments in Cisco, Yahoo, and Google into other moneymakers. Breyer's only real '90s hit, meanwhile, was RealNetworks — a thin reed on which to lay a keiretsu.

You have to admire the evil genius of the plan, if true: Breyer, a Facebook board member, can cherry-pick only the most successful app developers before rival venture capitalists have even heard of them. And Breyer, too, can guarantee favored startups something no one else can — protection from an abrupt decision by Facebook to block or cripple their apps. That power — implied, never spoken — also would bear a concomitant threat: Startups who don't play along with Accel, and accept the valuation they're given, may suddenly find Facebook an unfriendly place to write software.

So, Facebook developers, report in — is the rumor true? Has anyone gotten an offer they can't refuse? A hard sell from Accel? Drop us a word.

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Tue, 10 Jul 2007 11:32:22 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=276848&view=rss&microfeed=true
<![CDATA[ A rare view inside Sequoia Capital ]]> Inside Sequoia's inner sanctumSay what you like about Jason Calacanis: At least the bulldog-like entrepreneur isn't afraid to bite the hand that feeds him. Lightly. Without teeth. Calacanis accuses venture capitalist Roelof Botha and his colleagues of not being telegenic, a fact captured by AllThingsD.com's Kara Swisher in her video we linked to yesterday. But telegenic or not, Sequoia is the hot venture capital firm of the moment, which is why entrepreneurs should study, intently, the brief glimpse of Sequoia's inner sanctum Swisher filmed. Why? So that when you go to pitch your startup, you can walk in acting like you've seen it all before. Because you have. Required viewing, after the jump. ]]> Tue, 10 Jul 2007 09:15:24 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=276766&view=rss&microfeed=true <![CDATA[ Kara Swisher talks to VC Roelof "Rudy" Botha, ... ]]> All Things D] ]]> Mon, 09 Jul 2007 14:35:48 PDT Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=276513&view=rss&microfeed=true <![CDATA[ Perhaps to counterbalance the rudeness of ... ]]> the rudeness of other investors, Sequoia Capital has instituted a strict policy — any time one of their employees is late to an entrepreneur meeting, the offending VC is out $100. [OkDork] ]]> Fri, 22 Jun 2007 13:15:25 PDT Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=271512&view=rss&microfeed=true <![CDATA[ The great cellar robbery ]]> A snobby thief with very expensive taste in wine hit a home in the plum town of Atherton —home to Eric Schmidt, Charles Schwab and Meg Whitman — and swiped $531,000 worth of wine. That's 177 bottles with an average "street" value of $3,000. Who on Fair Oaks Lane, scene of the crime, can fund such excess? Please let it be Sequoia Capital's Thomas Stephenson. Anyone know? ]]> Fri, 12 Jan 2007 09:25:32 PST bschiff http://valleywag.com/index.php?op=postcommentfeed&postId=228380&view=rss&microfeed=true <![CDATA[ The curse of the promising startup ]]> tera-systems-award.jpgChip design automator Tera Systems hasn't returned clients' calls lately; nor has it updated its site in months. The home page still brags an award from consultant Frost and Sullivan, who said in 2004, "Tera Systems...has been able to gain significant momentum while continuing to excel in growing business around the world."

Valleywag is unqualified to give investment advice. So I'll tell you just for fun — "significant momentum" was used in the past week to describe the companies SpineVision, Juniper Networks, Affiliated Computer Services, Seacoast Banking Corporation, and McAfee, as well as the entire Swedish economy.

2004 Startup-Of-The-Year Winner Shuts Down in 2005 [alarm:clock]

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Sun, 29 Jan 2006 18:43:32 PST ndouglas http://valleywag.com/index.php?op=postcommentfeed&postId=151391&view=rss&microfeed=true