Edgeio CEO Keith Teare "...our investors pulled the plug WAY too early..."

techcrunch.com

13 points·staunch··8 comments

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

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.

But, for a classifieds service?

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

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.

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

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.

Teare is considering bidding on the assets of Edgio.

http://venturebeat.com/2007/12/10/edgeio-after-trying-bold-n...

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