By Nathan Rudyk
VentureBoard is an outgrowth of VentureBeat, started by former San Jose Mercury News reporter Matt Marshall. Matt's New New Thing recognizes the fact that Skype-type or YouTube-type transactions are increasingly rare, that there are lots of tech companies worthy of a less spectacular exit, and there's room for different approaches in times where VCs are skimming the cream, angels are acting like VCs, and putting your IP up for sale on Ebay comes across as a desperate measure.
Here's how Matt explains VentureBoard:
"We’ve seen a number of Web 2.0 companies list themselves on eBay recently. Fact is, YouTube is an exception. The median acquisition price for venture-backed companies was a mere $47.15 million last year, according to industry tracker VentureOne. That’s pretty low. It is a buyer’s market, because there are so many entrepreneurs who have built cool technologies. It is time entrepreneurs have a way to get exposure to their ideas and plans, and VentureBoard is a way.
Here’s another notable fact: Before the Skype deal, the last time a venture-backed company was bought for more than $1 billion was in 2001, when publicly traded Ciena Corp. bought telecom start-up Cyras Systems for $1.15 billion. This rarity is challenging the venture capital model. Even with MySpace’s robust sale to NewsCorp last year, it wasn’t enough to even push the performance of its major venture backer, VantagePoint into positive territory. Sevin Rosen Funds, another venture firm, has thrown in the towel on raising another fund, saying the environment is “terrible.” Entrepreneurs need different buyers and backers.
They’ve also been telling VentureBeat that they want an alternative to eBay, which requires a seller to accept the highest bidder and live by a specific close date."
VentureBoard. Check it out!
Nathan Rudyk is President of market2world communications inc., Canada's Web 2.0 tech product launch and public relations agency, founder of Ottawa's OCRIRadio.com tech business podcast, and VP Community Relations of Government 2.0 Technology Think Tank