If this is true, it’s nuts:
The rumors are flying that Meebo, all of 13 weeks old, has raised money [from Sequoia] at a $10 million pre-money valuation.
I’ll say straight up that the Meebo guys, in addition to seemingly being nice folks, have done a swell bit of coding with their web-based IM client. And there is nothing to sneeze at in a 17% daily compounded growth rate.
But at the risk of sounding old-fashioned, what’s the business here? You’re not going to charge, so it has to be ads, does it not? Among other issues, how is running ads alongside someone else’s IM service any more acceptable that Google running ads alongside someone else’s news content? Or is Sequoia just funding them — assuming they’re funding Meebo at all, which I still find doubtful — as a pure flip to acquisition exit?
obDisclosure: I have a nasty cold and a sore throat, so I’m less lucid than usual. It’s entirely possible I’m imagining all of this in a Sudafed-fuelled stupor.