Arianna and Croesus
Monday, November 24th, 2008
Word was the site needed to raise at least $5 million by January to make it another year.
If I were investing in a political site, I’d want to see three months worth of post election traffic data to get a baseline for projections. And if I were investing in a publisher at a time when ad revenues are in an as-yet-undetermined downtrend, I’d do my best to delay buying for another month or three. And if I knew my negotiating partner was a few days from the abyss, I wouldn’t be catching the express train to conclude a deal. Why not walk?
So Arianna has got to be a hell of salesperson to get VCs to accomodate her burn-driven timeline in this dire environment.
Arianna’s feat is triply impressive because VCs rarely invest in publishers. While tech companies can grow exponentially (for a period), a publisher’s growth is linear.