Chased by venture capital

October 29th, 2010

I don’t know what’s going on but in the last two weeks we have been approached by 3 different midsize VC/private equity firms enquiring about investment possibilities in EO. Obviously we aren’t on the radar of the big names such as Sequoia Capital or KPCB, but it still is encouraging in a way. The dilemma we have is quite funny – we really don’t know what we would use the cash for. I don’t really believe in “strategic looking” acquisitions (think Oversee buying Moniker and SnapNames) since I think they rarely create value, only opportunistic small bolt on acquisitions. Also a partial exit for our investors or me isn’t that interesting, since we really don’t need the cash either (would result in another dillema – where to put the money). So I really wonder how this will play out. In a way it is good that you really don’t need the cash, since you can really be picky and only accept a really good valuation. It also might be good to wait another year or so because I believe things will heat up again and there will be more institutional money swirling around.