

Edgeio CEO Keith Teare "...our investors pulled the plug WAY too early..." - staunch
http://www.techcrunch.com/2007/12/11/edgeio-bids-start-at-250000/#comment-1834869

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tptacek
They spent $6MM on infrastructure pre-revenue. The investors didn't pull the
plug anywhere nearly fast enough.

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downer
That's not unusual for something large and complex. Even video games have
multi-year development cycles and double-digit-millions budgets.

$6m in 3 years isn't high at all. Lots of little pre-revenue start-ups have
sold for more with many fewer assets than it sounds like this company has.
Google's first big round was $25m IIRC, and that was pre-keyword advertising;
and by today's standards that's a tiny amount. Good thing its investors didn't
panic and pull the plug.

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tptacek
Did you just say a $25MM A-round is a tiny amount by today's standards?

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downer
I meant $25m as a dollar figure is a tiny amount when compared to today's
acquisition prices (which may follow Angel-only investing) and considering how
big a chunk of Google they got for it. Perhaps that's hindsight, but even at
the time it seemed a pittance considering any expected IPO especially in those
dot-com days.

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tptacek
I don't know what that paragraph you wrote means, but $25MM is, in 2007, a
very large A-round.

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tx
I don't get it: Why would general purpose classifieds publishers (craigslist
and ebay) be interested in sharing their revenues with some middle man like
edgeio? I don't get their aggregation proposal: there is nothing to aggregate
- those two control most of the market, plus your friendly local dying Sunday
newspaper.

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rms
Teare is considering bidding on the assets of Edgio.

[http://venturebeat.com/2007/12/10/edgeio-after-trying-
bold-n...](http://venturebeat.com/2007/12/10/edgeio-after-trying-bold-new-ad-
model-to-auction-assets/#more-64052)

