Paul Kedrosky's Infectious Greed
Finance & The Money Culture
Whatever you think about YouTube, you have to give Sequoia credit for stepping up. An $8mm round for the company is impressive stuff.
I’m sorry, but why is this impressive in any way?
It’s neither a terribly innovative nor risky investment.
Youtube is a super-hot company at the forefront of one of the most significant media trends of the past decade. I imagine that it could easily sell for a hundred million dollars or two with a few phone calls.
Fair enough, but YouTube is also perched looking at the other end of a potential avalanche of copyright lawsuits. Recall how Napster’s venture backers suffered in a similar situation not that many years ago.
While I’m not surprised Sequoia did the deal, don’t kid yourself and believe that many VCs wouldn’t talk themselves out of it.
Paul Kedrosky‘s Infectious Greed
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