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Probably makes it easier for them to sell the company to bigco for $1bn.

After all instagram did something very similar, used VC investment to boost sale price. And it seemed to work very well. Can we expect some surprise news from github? I don't know, but that can sure be one valid reason for raising such money which they clearly don't need to work on the product in it's current form.

That would make AH look like complete fools, judging by the blog post. Not happening.

Why would they look like fools? Investors got 2X in a couple of weeks in insagram's case IIRC.

From github's announcement:

"They (AH) clearly have no interest in the status quo of venture capital."

"we're excited to partner with Andreessen Horowitz to help us make it happen"

"They want to help founders build great companies."

I believe that this is the correct answer.

And that probably explains the anti-VC sentiment. In multi-level marketing (MLM) pyramids, there's a "business" which serves as an investment vehicle for the money to trickle-up: energy juice, women's cosmetics, etc. A cynic sees startups serving the same purpose for VC. Announcements of funding are publicity stunts to pump up the valuation and then dump it in an "exit". The main difference between now and the late 90's, as far as I can tell, is that insiders sell their shares on SecondShare during later rounds, instead of waiting for an IPO to sell them on NASDAQ.

It's not.

Which BigCos would be in the running? MSFT, IBM, GOOG? Anyone else on the list?

Google makes some sense, at this point their Google code has lost out to github for the majority of open source projects.

Whether they could make a return on it would be another thing though.

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