New Fundinistas: Glam Media and Revolution Money
Glam Media, an online advertising network, has managed to raise another $10 million in funding, this time from Japanese investor Mizhuo Venture Capital. Glam has raised a total of $124.2 million in five rounds of funding, thus qualifying it as a “fundinista.” In case you’ve forgotten, fundinistas are those companies relentlessly raising venture capital dollars. To that list we’re also adding Revolution Money, which has raised $42 million in new funding from Goldman Sachs. That’s on top of the $50 million already invested in this payments firm, whose main competitor is PayPal. Previous investors include ex-AOL Vice Chairman Ted Leonsis and some former Wall Street chief executives. For both of these fundinistas, I have two words: Good luck!
And they’ll need luck. Both aren’t worthy of all the money they’ve raised, as they’re putting more effort into money-raising than putting forward an interesting idea to do with the money.
126 million? Are you kidding? What the hell do they need that much money for? They are an ad network!!!! That means they sell something for someone else and take a % of the money. They should have been profitable from their second month in business. What a joke.
They also tried to raise $200 Million a while ago – using some inflated traffic numbers – see this Techcrunch article http://bit.ly/CZyiP
for the record i don’t know much about glam and its performance. but I am always skeptical of the companies who raise too much cash. Not that there is anything intrinsically wrong with the raising money but i have seen again and again that such heavy investment mostly don’t yield a substantial return .Amp’d Mobile , Pets.com, webvan . one reason i can think of is that with reduce equity founder loose stake and don’t slog anymore.
but i hope glam is different
for the record i don’t know much about glam and its performance. but I am always skeptical of the companies who raise too much cash. Not that there is anything intrinsically wrong with the raising money but i have seen again and again that such heavy investment mostly don’t yield a substantial return .Amp’d Mobile , Pets.com, webvan . one reason i can think of is that with reduce equity founder loose stake and don’t slog anymore.
but i hope glam is different
BTW I love your blog!